Alibaba-backed Momo raises $216m in IPO

Chinese social networking company priced its shares in the middle of its indicative range, despite allegations of misconduct against its CEO.

Momo Technology, the Chinese social networking website, raised $216 million from its Nasdaq initial public offering on Thursday, shrugging off news that its head faced allegations of misconduct from a former employer.

The company sold 60 million American Depository Receipts at $13.50 per share, in the middle of its targeted $12.50 to $14.50 per unit range, after Yan Tang, Momo’s co-founder, chairman and chief executive officer was singled out in a December 10 stock exchange filing alleging malpractice.

The filing said Tang had received a legal letter from Wangzhiyi Information Technology, a unit of his previous employer NetEase, accusing him of breaching employment terms...

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