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China’s Xunlei, Backed By Google, Pulls IPO

Xunlei Ltd., a Chinese Internet company partly owned by Google is pulling its planned initial public offering due to market conditions, Reuters reported. The company filed in June to offer up to $200 million shares. Xunlei makes software to increase download speeds.

(Reuters) – Xunlei Ltd, a Chinese Internet company partly owned by Google (GOOG.O), filed with regulators on Thursday to withdraw its plans to go public, as a raging European debt crisis and weak U.S. economy chills the equity markets.

In June, Xunlei had filed for an initial public offering of up to $200 million and had seen pricing its American Depositary Shares at $14-$16 each.

The company, which makes software to increase download speeds, had expected to list its shares on 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.

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.

For a graphic on IPOs and volatility: link.reuters.com/dyf24s

(Reporting by Jochelle Mendonca in Bangalore; Editing by Saumyadeb Chakrabarty)