John Burbank‘s Passport Capital has revealed an increase in their investment in 58.com Inc (NYSE:WUBA). In a new filing with the Securities and Exchange Commission, Passport Capital has reported holding of 3.2 million Class A shares, up from 2.8 million shares previously owned. Burbank’s current position represents 11.8% of 58.com’s common stock.
Another fund interested in this stock is Robert Pitts‘ Steadfast Capital. Pitts recently acquired a little over 1.8 million shares, or 7.6% of the common stock, held through 904,377 ADR shares.
58.com, a Chinese provider of online advertising services, went public on October 31st. In the Initial Public Offering (IPO), the company sold 11 million American Depositary Shares (ADS) at $17 a piece. An over-allotment option for an extra 1.65 million ADS has been awarded to the underwriters, with each ADS being equal to two Class A shares. The price took off, rising to $27 apiece during the first day of trading, with shares currently changing hands at approximately $34.6. On November 12, 58.com announced that the underwriters of its IPO had exercised in full their options to buy 1.65 million shares at the initial price of $17. As a result, the company’s receipts following the IPO rose to $215 million.
The Chinese giant managed to constantly increase its revenues in the interval 2010 – 2012 from $10.7 million to approximately $87 million. 58.com posted revenues of $58.8 million and a profit of $285,000 for the first 6 months of 2013. This was the first time the company reported a positive profit. 58.com has $71 million worth of assets under control and debts of approximately $82 million.