Accoona: An IPO amongst the bric-bats

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The insults keep flying at search engine Accoona, which filed recently for an IPO. It will be listed on Nasdaq for an offer price of about $80.5 million. According to VentureBeat, the search engine is little more than hype and the Acoona IPO smells like a dog . The “search engine” actually derives most of its revenue not from search, but from an electronics retail business.

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Accoona, formed in 2004 by a partnership of two Chinese companies China Daily Information Company (CDIC), and China Communications Corp (CCC), claims to use Artificial Intelligence for its search engine (whether this is true AI or just database matching, is not clear).

When they launched in December of 2004, there was a lot of buzz about Accoona. They actually invited President Bill Clinton to do the first search at their launch.

The general consensus on the Accoona IPO is, just because it quacks like an IPO, doesn’t mean it is. Take for example, the fact that the company has consistently posted a loss - 14.8 million for the last quarter, and the search engine has very little traction. Accoona is also using a Google like auction process, according to John Batelle, who has scrutinized their S1.

In 2005, Chinese search engine Baidu.com made a spectacular entry on Nasdaq. Similar to Acoona, Baidu was a relatively small deal but ended up quadrupling from its $27 offer price to $122.54 at the end of its opening day. So it happened that a company with only $8 million in revenue ended up carrying a price tag of $4 billion at the end of its first quarter.

Also Baidu had stalwarts Goldman Sachs, Credit Suisse First Boston and Piper Jaffray as its underwriters. Accoona is listing Maxim Group LLC (who are they??) as its sole underwriters.

We might be proven wrong, but so far, Accoona is no Baidu!

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3 Responses to “Accoona: An IPO amongst the bric-bats”

  1. By Bill on Aug 8, 2021 | Reply

    I don’t think they will make it to IPO.

  2. By Roshan on Aug 8, 2021 | Reply

    All these chinaease companies are fakes. I have heard a statement that the chinease stockmarket has 75% value in the companies that are basically unsound and if they were audited with general accounting practice, they would all have to file for bankruptcy.

  3. By Robert Cole on Sep 2, 2021 | Reply

    Accoona is going public…Read this article published in one of the most important financial sites of China.
    http://en.ce.cn/Business/Enterprise/200708/31/t20070831_12749678.shtml

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