(Yicai Global) Aug. 1 -- China's internet company Sohu.Com Inc's [NASDAQ:SOHU] internet search services subsidiary Sogou Inc. plans to submit documents to the US Securities and Exchange Commission (SEC) for a possible initial public offering (IPO) in the US, the parent company said in a statement yesterday.
The IPO may start as soon as market conditions permit, it said, adding that Sogou will submit a registration statement on 'Form F-1' to the SEC in compliance with the US Securities Act of 1933. The number and value of shares to be offered in the IPO have not been determined yet.
Sohu.Com's revenue rose 10 percent year-on-year to USD461 million in the second quarter of this year, according to its financial reports released yesterday. Sogou's revenue grew 20 percent annually to USD211 million. Sogou's financial performance beat expectations as its mobile search traffic maintained strong growth, said Charles Zhang, chairman and chief executive of Sohu.Com.
China's internet giant Tencent Holdings Ltd. [HKG:0700] pumped USD448 million into Sogou.Com for a 36.5 percent stake in September 2013. As of 2016, Tencent holds 45 percent stake in the company, while Sohu and Photon Group Limited, an investment firm set up by Zhang, retain 38.35 percent and 9.56 percent, respectively. Core employees of Sogou and Sohu.Com hold 5.8 percent in Sogou, NetEase Technology reported.