Interpretation Of Investors Behind The World'S First Listed SNS Company

May 5, 2011 - American time May 4th, China's famous social networking site

The management of Renmin company includes chairman and CEO Mr. Chen Yizhou, chief operating officer Mr. Liu Jian, chief financial officer Huang Hui, with investor representative Mr. Katsumasa Niki of Japan's Softbank Corp, as well as Mr. Zhao Keren of the US DCM company, as well as representatives of the Underwriters, all of which have struck the opening bell of the New York stock exchange today.

Morgan, Stanley, Deutsche Bank and Credit Suisse are the co underwriters of IPO.

DCM third fund has 6 companies listed on the US stock exchange.

The DCM third phase investment fund everyone company ("everyone") began trading on the New York stock exchange for the first time. The initial public offering raised total capital of US $743 million, the initial market value was US $5 billion 500 million, and the market value was about US $7 billion 100 million based on the closing price of the first day of trading.

Whether in terms of raised capital or market value, everyone's initial public offering is the largest technology stock in the US stock exchange in the past 16 months.

Everyone is China's leading real name social networking platform, known as "China's Facebook" by the media. As of March 31, 2011, the number of registered users was 117 million.

Zhao Keren (David Chao) and Gen Isayama are the first and auxiliary partners of the DCM everyone investment project.

Zhao Keren has been the director of the company since 2006.

Over the past few years, a number of DCM team members have provided value-added services to the company.

Including the initial public offering, the DCM third fund has 6 companies listed on the US stock exchange, including: everyone (New York Stock Exchange: RENN), future worries (NASDAQ: JOBS), HireRight (NASDAQ: HIRE), Neutral Tandem (NASDAQ: TNDM), SMIC (New York Stock Exchange: SMI), SigmaTel (NASDAQ: SGTL), and 5 companies were acquired, including the successful acquisition of Symantec Corp by the Symantec Corp in 2010.

In the past 6 months, the DCM fund has produced 4 initial public offering companies, all (New York Stock Exchange: RENN), Shanghai green new (Shenzhen Stock Exchange: March 0025652011), Dangdang network (New York Stock Exchange: DANG, December 2010), Yi Che network (New York Stock Exchange: BITA, November 2010).

The DCM fund has a large number of companies investing in Golden Triangle, covering China, the United States and Japan. They are reaching a key milestone in their success, which will enable them to become attractive targets for listing or acquisition in the next 18 to 24 months.

Softbank investment has increased by nearly six times in three years.

NYSE:RENN opened $19.50 on the first day of the listing of the NYSE.

According to this calculation, Softbank, the largest institutional investor of all, has gained nearly six times its investment value in three years.

In the IPO, Softbank, the largest institutional investor of all, did not choose to sell shares.

After IPO, the number of shares held by Softbank is still 405388451 (about 135 million depositary receipts), but its shareholding ratio has dropped to 34.4%.

According to the opening price of US $19.50, Softbank has a stock market value of about $2 billion 633 million.

In January 31, 2011, Softbank group pferred all its holdings of 1000 oak group to its subsidiary SB Pan Pacific Corporation (hereinafter referred to as "SB Pan Pacific").

SB Pan Pacific is a company registered in the Western Pacific Islands group in Micronesia.

SB Pan Pacific held a 39.6% share before everyone IPO, and after IPO, its shareholding ratio was diluted to 34.2%.

From the perspective of shareholding ratio, Softbank should exercise warrants of US $288 million in 2009 and expand its shareholding ratio to nearly 40%.

In April 2008, Softbank invested 40 billion yen (about 384 million U.S. dollars) into the stock market.

Similarly, three years later, the investment has increased 5.85 times.

Accel Partners, Lenovo investment and so on.

Renren has invested in DCM, General Atlantic, Accel Partners, Lenovo investment, Softbank and other institutions since 2006, raising a total of about $480 million.

According to the IPO listing application document submitted by Renren company, the company will also issue private placement at the same time of the public offering. The Alibaba group, the CMC Chinese culture fund under the SMG of Shanghai, and the CITIC industry fund agree to purchase $110 million worth of all company stock from the company according to the issue price.