Weibo Corp (WB)

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SINA Corp. (SINA-$52.19, market cap $3.5 billion) will carveout Weibo in an IPO this week. SINA is an Internet media company operating Chinese language destination sites. Weibo is a Chinese micro blogging website and a leading social media platform in China. Weibo expects to price the IPO in the range of $17 to $19 per American Depository Share (ADR). The pricing is expected to be announced on April 16 and the shares are expected to begin trading on the NASDAQ on April 17 under the ticker “WB”. SINA will carve-out part 11% of Weibo in the IPO and retain 56.9%. Alibaba will own 32% post IPO. Each share of the parent (SINA) will have 1.74 shares of Weibo embedded post IPO (based on the midpoint price of $18). This suggests each share of SINA will have about $31 worth of Weibo (per SINA share) after the carve-out.