IPO bet pays off for website

Traders stand near the broker's booth for 500.com Ltd, a Chinese lottery company. The company made its debut on the New York Stock Exchange on Nov 22, 2013. [Photo / Agencies]

Sports lottery firm raises more than $100m on New York Stock Exchange

More overseas initial public offerings by Chinese lottery websites are likely, after industry leader 500.com Ltd raised more than $100 million on its first trading day on the New York Stock Exchange, analysts forecast.

Video:500.com IPO debuts in US

Closing at $18.64 on Friday, 43.4 percent above its IPO price, 500.com was the first listed lottery company on the Chinese mainland and the third Chinese dotcom to go public in the United States this month.

The Shenzhen, Guangdong-based company had initially planned to raise $75 million from its IPO. Deutsche Bank AG was the sole bookrunner on the deal.

"We will focus on China's lottery market because of the huge growth potential," said Man San Law, founder and CEO of the company.

"Listing was just the first step for us, and the company will try to expand its market share in the coming years," he said, adding that merger and acquisition deals are possible.

"The executives of the company know how to regulate their business and play under government supervision," said Li Chao, an analyst at iResearch Consulting Group.

The company, founded in 2001, was one of the first to provide online lottery services on the Chinese mainland. It allows users to place bets online and through mobile applications.

The company is one of two entities that have been approved by the Ministry of Finance to provide online lottery sales on behalf of the China Sports Lottery Administration Center.

"500.com has accumulated the biggest user base.

Shares of China's 500.com, Sungy Mobile roar