Jiayuan.com International Ltd. (DATE)

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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

 

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Remi Cossart

Jiayuan.com International Ltd. (NASDAQ:DATE) is the largest Chinese online data network in terms of unique page views, total user time spent on the site, and amount of money spent on the dating site. The company operates a platform on which users can meet, interact and establish a relationship. Jiayuan.com makes money through a pay-per-use model. For the first direct message between two users, either the sender or the receiver must pay for a virtual stamp. After the first message between two users, all correspondence is free. This model allows users to enter and search the site for free, but upon beginning to correspond with someone, they must pay a nominal fee.^[1]

Jiayuan.com's continued growth is based heavily on the growth of the middle class in China and the resulting increase in internet usage in China. In particular, Jiayuan.com has had a focus on higher educated Chinese who live in 1st tier cities. Jiayuan hopes that the continued economic growth and internet penetration will cause the site usage to spread to 2nd and 3rd tier cities and encompass more of the middle class.^[2]

The company's initial public offering of stock on the NASDAQ occurred on May 10, 2011. The company offered 7.1M ADSs each for $11. This was at the midpoint of the $10 - $12 initial price range. The company had originally planned to sell between the range of $9-$11. This offering raised a total of $78M. The lead managers of the IPO were Bank of America (BAC) and Citigroup (C).^[3]

For the full year 2010, Jiayuan.com's total revenue was $23M. The company reported a net income of $2.5M. Both the revenue and net income figure were an increase over the 2009 performance.^[4]

1. ↑ DATE F-1/A 2011 PROSPECTUS SUMMARY "Overview" pg 1
2. ↑ DATE F-1/A 2011 PROSPECTUS SUMMARY "Industry Background" pg 2
3. ↑ Renaissance Capital - IPO Home "Jiayuan.com prices IPO at $11, the midpoint of the range" 11 May 2011
4. ↑ DATE F-1/A 2011 PROSPECTUS SUMMARY "SUMMARY CONSOLIDATED FINANCIAL AND OPERATING DATA" pg 12