The last two Chinese IPOs priced in the United States went splat. Earlier this year, there were two tiny IPOs that produced opening-day moonshots, while another deal was a secondary that some called an IPO. And finally, two more China-based companies filed to go public this past week.
Out of the Race
China Distance Education Holdings (NYSE: DL) (Quote, chart, news), a Beijing-based provider of educational services, priced its IPO of 8.75 million shares at $7 each, down from a $9- to $11-per-share filing range. The IPO started trading on July 30 and closed its opening day at $6.63, DOWN 5.3 percent from its initial offering price. China Distance closed on Friday, Aug. 15, at $6.05, DOWN 8.8 percent from its offering price.
China Mass Media International Advertising (NYSE: CMM) (Quote, chart, news), a Beijing-based television advertising company, priced its IPO of 7.2 million shares at $6.80 each to raise $49 million, down from a filing of 14.4 million shares at $5.20 to $7.20 each to raise $89 million. The IPO started trading on Aug. 4 and closed its opening day at $6.50, DOWN 4.4 percent from its initial offering price. China Mass Media closed on Friday, Aug. 15, at $5, DOWN 26.5 percent from its offering price.
The Moonshots
Asia Time (AMEX: TYM) (Quote, chart, news), a Hong Kong-based distributor of watch movements, priced its IPO of 838,000 shares at $3.50 each to raise $2.9 million. The IPO started trading on Feb. 13 and closed its opening day at $8.75, UP 142.9 percent from its initial offering price. Asia Time closed on Friday, Aug. 15 at $3.80, UP 8.57 percent from its offering price.
Hong Kong Highpower Technology (AMEX: HPJ) (Quote, chart, news), a Shenzhen-based producer of rechargeable batteries, priced its IPO of 603,000 shares at $3.25 each to raise $1.96 million. The IPO started trading on June 20 and closed its opening day at $6.84, UP 110.5 percent from its initial offering price. Hong Kong Highpower closed on Friday, Aug. 15, at $4, UP 23.1 percent from its initial offering price.
The Latest Chinese Filings
NIVS IntelliMedia Technology Group, a Guangdong, China-based designer of audio and visual consumer products, filed for an IPO to offer 500,000 shares at $3.25 to $4 each to raise $1.8 million.
This is another small-cap offering like Asia Time and Hong Kong Highpower Technology.
Recon Technology (Nasdaq: RCON proposed), a Nanjing-based provider of computer software and hardware solutions to companies in the petroleum mining and extraction industry, filed for an IPO to raise $10 million.
Its prospectus states: “We have engaged Anderson & Strudwick, Incorporated to conduct this offering on a “best efforts, minimum/maximum” basis. The offering is being made without a firm commitment by the placement agent, which has no obligation or commitment to purchase any of our Shares.”
And the Chinese Secondary
ReneSola (NYSE: SOL) (Quote, chart, news), based in Zhejiang Province, is a Chinese manufacturer of solar wafers. It priced 10 million shares at $13 each. The shares started trading on Jan. 29 and closed their opening day on the New York Stock Exchange at $12.99, DOWN a penny from its offering price. ReneSola closed on Friday, Aug. 15, at $18.13, UP 39.5 percent from its offering price.
However, ReneSola had been trading on London’s AIM since August 2006. On Jan. 28, the stock closed on the AIM at £3.63 per share, or about $14.42 per share based upon the exchange rate at that time.
Note: The AIM was launched in 1995 as an alternative investment market, or AIM, to the London Stock Exchange. Designed primarily for emerging or smaller companies, the AIM has been serving the needs of those companies wishing to go public and not incur the expenses of complying with the Sarbanes-Oxley Act to go public in the U.S. capital markets.
Worth noting: The ReneSola deal is a secondary offering — not an initial public offering.
What to make of all this?
Since the first of the year, Chinese IPOs have had a couple of pops, a couple of flops and a couple of interesting filings in the U.S. capital markets.