'China's Twitter' files for public stock offering in U.S.

Weibo, the Chinese microblogging service often compared with Twitter, filed Friday for a U.S. stock offering seeking to raise $500 million.

The move will allow the popular Chinese-language social network to spin off from the Internet giant Sina, according to documents filed with the U.S. Securities and Exchange Commission.

The filing said Weibo had 129.1 million monthly active users in December and 61.4 million average daily active users.

"A microcosm of Chinese society, Weibo has attracted a wide range of users, including ordinary people, celebrities and other public figures, as well as organizations such as media outlets, businesses, government agencies and charities," the SEC filing said.

"Weibo has become a cultural phenomenon in China.

"Weibo allows people to be heard publicly and exposed to the rich ideas, cultures and experiences of the broader world," it added.

"Media outlets use Weibo as a source of news and a distribution channel for their headline news. Government agencies and officials use Weibo as an official communication channel for disseminating timely information and gauging public opinion to improve public services."

The filing said Weibo's initial public offering (IPO) will be part of a "carve-out from Sina" but that Sina would "continue to provide us with certain support services" after it becomes independent.

Weibo reported revenues for 2013 of $188 million, triple the level of 2012, but has continually lost money, like its US counterpart, with accumulated losses of $274.9 million as of December 31.

But Weibo said it would work to increase the number of users and monetization as it strives for profitability.

The company did not indicate whether Weibo would file its IPO on the Nasdaq or New York Stock Exchange.

The lead underwriters will be Goldman Sachs Asia and Credit Suisse.

[Image via Agence France-Presse]