rjm77me's Blog : Update on China based Financial Engineered companies

SouFun Holdings, which operates the leading ad-supported real estate website in China, priced its 2.9 million ADS offering at $42.50, the high end of the $40.50-$42.50 range, Thursday evening. The stock is expected to begin trading on Friday on the NYSE under the symbol SFUN. Deutsche Bank and Goldman Sachs (Asia) were the underwriters on the deal.

Telstra's SouFun Holdings Limited files, sets terms for $122 million IPO
9/2/10 - the company who brought the IPO is selling all the the stake - if the story line is right. WILL REAL OWNERS EXIT AND SELL ALL THE SHARES IF THERE IS REAL GROWING BUSINESS???


SouFun Holdings Limited, which operates the leading real estate website in China, submitted its initial filing and announced terms for its IPO on Thursday. The Beijing-based company plans to raise $122 million by offering 2.9 million ADSs at a price range of $40.50-$42.50; at the mid-point of the proposed range, it will command a market value of $846 million. SouFun is currently controlled by Telstra International, which bought a 55% stake in the company for $254 million in August 2006. In a concurrent private placement, Telstra plans to sell 1.8 million ADSs to buyers including private equity firms General Atlantic and Apax Partners and exit its stake on the IPO. Other shareholders will sell an additional aggregate of 860,322 ADSs. SouFun, which was founded in 1999 and booked $158 million in sales for the 12 months ended June 30, plans to list on the NYSE under the symbol SFUN. Deutsche Bank Securities and Goldman Sachs (Asia) L.L.C. are the lead underwriters on the deal, for which timing was not disclosed.

rjm77me,
Insiders selling their stock on IPO is not by itself a cause for concern. I would consider it a yellow-ish flag. :-) Remember, it's never a bad thing to take a profit.
The most interesting part of this (above average) IPO is that General Atlantic(!!!) and Apax are buying shares at the ipo price. They know more than we could ever possible know about the company. If they are interested, the risks to share appreciation decrease nicely.
zaphod

No one knows when the dark pools sell or who controls them.
Some times left hand is selling to right hand.
I just compared of valuation of this company to similar companies and SFUN appears to be balloning out of control.
Same way a number of recent Indian IPO are valued sky high - these are hyped up stuff and can keep going up. It is like musical chair - who will hold at the peak.
I can compare to Ethonol stocks / PEIX or dot com era stocks
APAX were behind IPO Smart technologies - IPO price $17 - it went down to under $11 during next 45 days - straight down - now at 13.61
One does need to short these kind of stocks with good money management.
APAX also floated a number of great companies - so one has to consider case by case or valuation basis.
Paper money does not count.

Thia is the Indian stock IPO which was on fire
MMYT 37.77) downgraded to Hold from Buy at Soleil