By David Goldman
Chinese Internet company Qihoo 360 went public with a bang Wednesday morning on the New York Stock Exchange, with shares immediately doubling at the start of trading.
Qihoo 360 (QIHU) priced its stock at $14.50 a share, but shares opened at $27 and quickly soared as high as $33.40. The company raised more than $175 million in its IPO.
The Internet software company sells antivirus software and security services. it also develops Web-based games and makes the second-most used Internet browser in China, behind Microsoft’s (MSFT, Fortune 500) Internet Explorer.
With 300 million Internet users in China — a number that’s rapidly rising — second place is an attractive position to be in. Qihoo attracted significant interest from U.S. venture capital firms, receiving backing from big-name VCs such as Sequoia Capital and Highland Capital Partners.
Last year, Qihoo took in $58 million in sales and made a profit of $8.5 million. Revenue was up 79%, and its profit more than doubled from 2009.
That the IPO was a roaring success wasn’t a surprise. Two other Chinese Internet companies, Youku.com (YOKU) and Dangdang (DANG) both went sky-high after their December 2010 IPOs. Shares of Chinese search leader Baidu (BIDU) have risen 41% this year.