Update | China dating app Momo goes ahead with Nasdaq IPO as accusations against its founder backfires on former employer
Allegations of misconduct against a former employee just 40 hours before his new venture was due to list on the Nasdaq have created a media backlash against NetEase.
Allegations of misconduct against a former employee just 40 hours before his new venture was due to list on the Nasdaq have created a media backlash against NetEase - China's fifth-largest internet firm by market value.
It also alleged Tang had abused his power to award contracts worth more than one million yuan (HK$1.26 million) to a company co-founded by his wife.
Momo said Tang would "vigorously defend himself" against the allegations, but declined further comment citing a "silent period" mandated by US laws.
Momo's IPO went ahead as planned on Thursday on Nasdaq, raising US$ 216 million with an offer price of US$13.50 per share. The stock rose 26 per cent during the trading day, ending at US$17.02, giving Momo a market capitalisation of US$3.17 billion.
Meanwhile, a media storm is gathering pace with former colleagues and commentators defending Tang and criticising NetEase for launching what they say is a well-timed smear campaign.