Google-backed Xunlei postpones Nasdaq IPO: IFR

Reuters News
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Posted: Jun 17, 2011 3:18 AM

HONG KONG (Reuters) - Xunlei Ltd, a Chinese Internet platform company in which Google has a small stake, decided to postpone its initial public offering of up to $200 million in the United States because of unfavorable market conditions, IFR reported on Friday, quoting a source with knowledge of the decision.

Shenzen, China-based Xunlei had planned to start meetings with investors to gauge demand for its IPO on June 17, said IFR, a Thomson Reuters publication.

Sean Shenglong Zou, Xunlei's co founder, is the company's biggest shareholder with a 27.5 percent stake, while Google owns 2.8 percent of the shares.

The company had filed to list its shares on the Nasdaq under the symbol "XNET." Xunlei planned to use proceeds from the offering to invest in technology, infrastructure and product development and to acquire digital media content, according to its IPO prospectus.

JPMorgan and Deutsche Bank had been hired as lead underwriters for the offering.

(Reporting by Fiona Lau, Writing by Elzio Barreto; Editing by Jacqueline Wong and Jonathan Hopfner)