Sohu's (SOHU) online search subsidiary Sogou has filed for an Initial Public Offering (IPO) of American depository shares (ADS). The number of ADSs to be offered and the price range for the proposed IPO have not yet been determined. Sogou intends to list its ADSs on the New York Stock Exchange under the symbol "SOGO."
Sohu shares have surged to a two-plus year high as a result. Investor's have reason to be encouraged. Sohu's last spin-off was Webio (WB), the Chinese micro-blogging site (similar to Twitter and a competitor to Tencent). Shares of Weibo are up almost 500% since its IPO in April of 2014.
Sogou is the number two search engine in China, behind Baidu (BIDU). Sogou is a subsidiary of Sohu but Tencent (TCEHY) also has a stake.
FRom Sogou's F-1 filing:
"Sogou Search is the second largest search engine by mobile queries in China and the fourth largest Internet company in China based on MAU in June 2017, according to iResearch. Sogou Search had a 16.9% market share in China based on mobile queries in June 2017, according to iResearch, with 483 million mobile MAU... Chinese language input software is a must-have for users to type in Chinese. Sogou Input Method is the largest Chinese language input software by both mobile and PC MAUs in June 2017, according to iResearch, and is the first cloud-based Chinese language input software."
Sogou's business is fairly strong. Last year, the company reported operating income down 29% to $72 million, gross profit up 4% to $358 million and revenue up 11.6% to $660 million. Through the first six months of 2017, gross profit is down 1.6% to $180 million with revenue up 16%. $373 million.