* 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 shares.
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)