Sogou in search of US$5 billion from an IPO as it chases bruised rival Baidu
‘Search dog’ plans to sell about 10 per cent of its shares in an IPO likely be held this year
China’s third-biggest search engine expects to hold a US initial public offering at a valuation of as much as US$5 billion as it raises cash to close the gap with leader Baidu Inc in the mobile market.
Sogou, whose name translates as “search dog,” plans to sell about 10 per cent of its shares in an IPO that will probably be held this year, said chief executive officer Wang Xiaochuan.
Backed by social media giant Tencent Holdings Ltd and Sohu.com, the company hasn’t formally hired banks to run the listing. But Sohu shares have risen the most in 10 months.
While Baidu remains the biggest provider across all platforms in China, it’s under siege after a scandal over medical advertising as smaller rivals including Sogou and Qihoo 360 Technology win mobile users.
Wang plans to use part of the IPO proceeds to improve search results by backing companies developing artificial intelligence and machine-learning technologies.
“Over the past year, we’ve seen a trend where people are finding themselves not trusting Baidu as much and some are even seeking a replacement,” he said at the company’s Beijing headquarters.