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Bitauto Holdings Limited (BITA) |
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WIKI ANALYSIS
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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
Bitauto Holdings (NYSE:BITA) is a Chinese online advertising company which markets for the Chinese automotive industry. The site provides consumers with information on new and used cars including: pricing, specifications, and reviews. According to iResearch, the company's sites are the most visited in the industry in China. Bitauto makes money by charging dealers fees to list there cars and auto parts on the site. The company also offers a series of platforms which allows advertisers to manage their advertising campaign effectively and without going through a third party agency. There are approximately 80 car companies in China, and 69%, or 55 of them, placed ads on Bitauto in 2010.[1]
Due to the increased urbanization of China, as well as the growth in China's middle class, the sale of new automobiles in China has grown by a compounded annual growth rate of 24.2% from 2005 to 2009. As of 2009, there were 13.8M cars sold in the country. According to J.D. Power, the market is expected to continue to grow at an annual compounded growth rate of 11.5% until 2012. Compounded with this, the online industry has also grown rapidly and is expected to continue to grow in China. Bitauto expects that these trends will expand the company's market size drastically.[2]
The company's initial public offering of stock on the NYSE occurred on November 16, 2010. The company offered 10.6M ADSs each for $12. This was within the initial price ragne of $10-$12. The IPO raised a total of $127M. The lead underwriters of the deal were UBS AG (UBS) and Citi.[3]
Bitauto has grown its total revenue figures since 2007. The company reported figures of 128M RMB, 239M RMB, and 293M RMB in 2007, 2008, and 2009 respectively. This corresponds to approximately $43M in 2010. However, the company experienced a net loss of 60M RMB or $9M in 2010. [4] This fall in net income was primarily due to losses associated with an increase in the fair value of the preference shares as a result of an improved forecast for the company's performance.[5]
References
- ↑ BITA 2010 F-1/A PROSPECTUS SUMMARY "Our Company" pg 1
- ↑ BITA 2010 F-1/A PROSPECTUS SUMMARY "Our Industry" pg 2
- ↑ Renaissance Capital - IPO Home "Bitauto Holdings prices IPO at $12, high end of the range" 17 Nov 2010
- ↑ BITA 2010 F-1/A PROSPECTUS SUMMARY "SUMMARY CONSOLIDATED FINANCIAL DATA" pg 8
- ↑ BITA 2010 F-1/A PROSPECTUS SUMMARY "Our Company" pg 2
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