Chinese search engine Sogou has taken a big step towards becoming international with a successful IPO last Friday. Its shares rose to $13, which raised $585 million for their expansion plans, which include mergers and acquisitions, as well as partnerships to develop practical artificial intelligence (AI).
“This IPO has opened a window for our globalisation,” said Sogou’s CEO Wang Xiaochuan to the Financial Times. “Globally, we will look at M&A and partnerships with companies who have the technology to improve our AI.”
Sogou is expected to seize a major share of the search market in China amid growth in mobile users. Sogou holds 20.9% of the market, while their fierce competitor, Baidu, is the leader at 41.2%. Sogou keeps 483 million users monthly, according to Reuters.
The IPO of Sogou (SOGO.N) is part of a major expansion for Chines tech companies, who are expanding throughout the International market. Recently, another Tencent Holdings enterprise -Sogou parent company- used an IPO to raise capital for China Literature Ltd (0700.HK).
After the IPO, Sohu company will remain Sogou’s controlling shareholder, while Tencent Holdings will own a 38.7%. The net income of the search company climbed 47%, up to $66.7 million in the nine past months, putting their revenue at $630.6 million in that period.