Renren.com, Chinas largest social-networking service, is seeking a US initial public offering (IPO), Bloomberg News reported on Monday.
The company is preparing an IPO of about $500 million this year, the report said, citing three people with knowledge of the plan.
The banks handling the IPO are Morgan Stanley, Deutsche Bank AG and Credit Suisse Group AG, it reported, citing an unnamed source.
"It's good timing to go for a listing," said Jim Tang, a telecommunications analyst at Shenyin Wanguo Securities Co in Shanghai. "It definitely will be able to lure many international investors. It should be using the IPO proceeds to develop and promote its technology and products."
Renren.com has more than 160 million registered users, according to Analysys International in Beijing, the report said. The site could use the IPO proceeds to woo more visitors as it competes with local rivals Tencent Holdings Ltd and Baidu Inc, the report analysised.
Renren traces its roots back to 2005, when graduates of Tsinghua University in Beijing founded Xiaonei.com, the report said, adding that it was the year after Mark Zuckerberg, chief executive officer of Facebook, created his service for fellow Harvard University students.
In 2006, Xiaonei was acquired by closely held Oak Pacific Interactive Corp, which renamed the service Renren in 2009, it said.
Softbank Corp, a fastest-growing Japanese mobile-phone carrier, is the biggest shareholder.
