Allyes fails to impress investors

PUBLISHED : Tuesday, 06 March, 2007, 12:00am
UPDATED : Tuesday, 06 March, 2007, 12:00am

Allyes, co-founded by chief technical officer Wang Jiangang and three high-school classmates in 1998, raised US$30 million from US-based venture capital firm IDG and Oak Investment Partners in September 2005.

Focus Media chief executive Jason Jiang was also an earlier investor and had less than 5 per cent of the company before the acquisition, according to Focus chief financial officer Daniel Wu.

Allyes, which had tried to get a Nasdaq listing, hired investment bank Morgan Stanley in an effort to raise about US$100 million in the first half of this year before dropping the offering plan at the final stages.

'Allyes has been trying for a Nasdaq listing since last year, but its revenue growth was not enough and its profit was too small,' a source said.

'Investors were not very impressed when they did their marketing in US,' the source added.?