Momo feels the love for its $650m convertible

China’s leading dating and social networking app takes advantage of its stock rally to tap funding from convertible bond issue for its acquisition of rival app Tantan.

Chinese social networking and dating app Momo overcame extreme market volatility to raise $650 million from its first-ever convertible bond sale on Tuesday, underscoring investor confidence in the company’s prospects as it expands outside its core business.

In launching the trade on Tuesday morning, the Nasdaq-listed company appeared unfazed by a massive selloff in the US on Monday, when the Dow Jones Industrial Average plunged 1.3% and fell below its 200-day moving average for the first time in two years on further fears of a trade war. Monday’s drop has extended the index’s 3% loss since mid-June.

However, Momo’s confidence is not without foundation. The stock...

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