Prime Capital Management Co Ltd is bullish on 500.com Ltd (NYSE:WBAI). In a recent filing with the Securities and Exchange Commission, Prime Capital disclosed opening a new position by acquiring 3.3 million shares. The fund’s stake accounts for 5.74% of the company’s common stock. At current market prices, the holding is worth approximately $94.7 million.
Only one other hedge fund we track has opened a position in 500.com Ltd, since the company has only recently went public. Och-Ziff Capital Management, run by Daniel S. Och, bought 1.5 million Class A shares, about 2.6% of the company’s shares outstanding.
500.com Ltd went public on November 22nd, in an Initial Public Offering (IPO) priced at $13.00. Approximately 5.8 million American Depositary Shares (ADS) were offered, including underwriter options for 867,900 shares. Each ADS represents 10 Class A shares. Shares started trading at $20.68 and have already advanced 39% to a current price of $20.80 per share.
A Chinese online lottery service provider, 500.com Ltd had the largest market share in the first half of 2013, according to the prospectus filed with the Securities and Exchange Commission. For the first 9 months of 2013, the company disclosed revenues of $26.7 million and a net income of $3.4 million which translates into earnings per share of $0.01. The company has a market cap of 1.61 billions and does not pay a dividend.
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