Qihoo 360 Technology Co Ltd (NYSE:QIHU) To Delist From NYSE

The Chinese companies listed in the United States always make an interesting case when it comes to share market dynamics. For example, the Chinese ecommerce giant Alibaba Group Holding Ltd (NYSE:BABA) made a record by holding the largest IPO in the United States history.

This time, another Chinese company Qihoo 360 Technology Co Ltd (NYSE:QIHU) is about to set a record in the reverse direction. According to sources, this company will no longer be listed in the New York Stock Exchange and will become a private firm. Recent press release of the company confirms this speculation.

According to analysts, being publically listed in the United States is not beneficial to every company. Qihoo 360 Technology Co Ltd (NYSE:QIHU) specializes in antivirus and other internet services for smartphones. It appears that the company believes in being listed in its home country rather than in the United States. Yesterday, the chairman and the CEO of the company released a press release that included an offer to buy all the stocks not owned by Zhou Hongyi and its affiliates.

The CEO is ready to acquire all class A and class B ordinary shares. With each share valued at $77, this will comprise a buyout of almost $9 billion. This is nearly 17 percent of the company’s valuation. According to Wall Street Journal, this will be one of the largest deals of the US listed Chinese company.

Possible Reasons to Delist from NYSE

It seems evident that the company believes in the domestic market. But what has changed over the years? The policies by Chinese government have changed drastically. China is attracting major tech companies to interact with its national stock markets. Subsidies and other benefits are added as perk. Plus, China’s domestic stock market is booming very fast.

It is no surprise that the company sees more potential in China than in the United states where its services aren’t that popular.