Shares of Chinese messaging app Momo rose by 26% on its first day of trading, the company raising $216m.
The Alibaba-backed app debuted on the Nasdaq yesterday, and was valued at around $3bn.
Their first day successes come after corruption allegations from a former employer of Momo CEO Tang Yan, who said he had stolen technology from NetEase, and founded Momo while still an employee there.
Momo is a location-based messaging and social platform which has 180.3m registered users, 60.2m active monthly users and 25.5m daily users, according to their filing.
In their prospectus, Momo wrote: “People may not understand the value of our platform, and there may be a misperception that Momo is used solely as a tool to randomly meet or date strangers.”
Momo also recently introduced location-based advertising — and in their filing spoke about the marketing potential for location apps like Momo in China.
The app monetises through a combination of premium subscriptions and selling things like stickers, games and emoticons.
Since they started monetising in July 2013, their revenues have quadrupled to $13.9m in the first half of 2014.
They generated 63% of this revenue from premium subscriptions.