UPDATE 1-China’s Qihoo 360 raises IPO guidance to $13.5-$14.5 -source

* Qihoo raises IPO price due to “significant” investor
demand -source

* Private equity firms Sequoia, CDH in $50 mln private
placement -source

(Adds details)

By Elzio Barreto and Stephen Aldred

HONG KONG, March 29 (Reuters) – Qihoo 360 Technology Co Ltd,
China’s third most-popular Internet company, has raised the
pricing for its New York initial public offering because of
“significant” investor demand, a source with direct knowledge of
the IPO plans said on Tuesday.

The Beijing-based company had raised the proposed price
guidance on its stock to $13.5-$14.5 per share from
$10.5-$12.5 in a deal expected to raise around $200 million,
said the source, who asked not to be identified because the
revised terms are not yet public.

Venture capital and private equity firms Sequoia Capital,
Highland Capital Partners, Trustbridge Partners and CDH
Investments had agreed to buy $50 million worth of Qihoo shares
in a private placement concurrent with the IPO, the source said.

The lock up period for the private placement is 180 days,
the source said.

Qihoo is offering 12.11 million new American depositary
shares (ADS) in the IPO to fund the development of new security
products, improve its research and buy new products and
technologies. Two ADSs are equivalent to three class A ordinary

Citigroup and UBS Investment Bank are the
lead underwriters for the deal.

Citigroup and UBS declined to comment. Sequoia, Highland and
CDH were not immediately available for comment. Trustbridge
could not be reached for comment.

(Editing by Jacqueline Wong)

UPDATE 1-China’s Qihoo 360 raises IPO guidance to $13.5-$14.5 -source