China’s most popular search engine Baidu.com wants a piece of the search boom generated by Google’s successful IPO, with plans to raise $88.5 million from a listing on the Nasdaq.

The company filed a statement with the U.S. Securities and Exchange Commission saying it would offer 3.7 million American Depositary Shares (ADS). Baidu plans to offer 2.6 million ADSs and selling shareholders will offer 1.1 million ADSs.

Each share in the initial public offering will be priced between $19 and $21, the company said. The underwriters will be Goldman Sachs, Piper Jaffray, and Credit Suisse First Boston.

Credit Suisse

Current Baidu investors include IDG, Draper Fisher Jurvetson, Peninsula Capital, and Integrity Partners.

IDG, Draper Fisher Jurvetson, Peninsula Capital, and Integrity Partners.

The latest filing is an amendment to an earlier registration document filed on July 12, but the first document did not list the details or terms of the offering.

Acquisitions Likely

Baidu, the most popular search engine in the world’s most populous nation, has been planning its Nasdaq listing for several months (see Baidu Plans July IPO). The company wants to use proceeds from the IPO to expand its customer base as well as to improve the Baidu user experience, the company said.

Baidu Plans July IPO

That probably means Baidu will be looking to make some acquisitions to increase its reach and better compete with the likes of Google, Yahoo, MSN, and Chinese companies such as NetEase, Sina, Sohu, and Alibaba.

Yahoo

Most of the larger American Internet companies are now looking to China as the next platform to spur their growth. Over the last few years, Yahoo, Google, and IAC/InterActiveCorp, among others, have expanded their operations in China.

China

Google, the second most popular search engine in China, owns 2.6 percent of Baidu. It has 30.1 percent market share, behind Baidu’s 44.7 percent, according to Internet research firm iResearch.

China

Baidu, a five-year-old company, launched its own site in 2001 and relies primarily on online advertising for revenue. It generated revenue of $13.4 million in 2004 and $5.2 million in its most recent quarter.

While that may seem small by U.S. standards, it doesn’t necessarily mean that the company is too small to go public.

U.S.

“This company constitutes a combination of two very hot areas right now: China and search,” said Scott Kessler, an analyst with Standard & Poor’s.

ChinaWithin China, Baidu is a coveted brand and a common subject of speculation about its possible acquisition by larger companies. Recently, talk has surfaced that Google intends to buy Baidu but the Mountain View, California-based search engine has declined to comment.