China's Dangdang.com Raises $272 Million in IPO
Retailer of Books and Media Products Raises More than Expected in NYSE Debut
NEW YORK -- E-Commerce China Dangdang Inc., sometimes referred to as the Amazon.com of China, priced shares in its initial public offering above the expected price on Tuesday, raising 14.3% more than expected, an underwriter said.
The top-ranked Chinese online retailer sold 17 million American Depositary Shares for $16 each, raising $272 million.
The company on Monday raised the expected price range of its IPO to $13 to $15 per share from $11 to $13 per share. It had planned to sell 17 million shares.
Dangdang's IPO comes soon after that of China-based online retailer Mecox Lane Ltd. Soon after its IPO Mecox reported a year-on-year drop in its gross margin, causing its shares to swoon and triggering several class action lawsuits.
Dangdang competes in China with Amazon joint venture Joyo.com and Alibaba Group's Taobao. It sells books, clothing and household goods online and offers cash-on-delivery payment service in over 750 cities and towns in China, along with online payment, wire transfer and pay-by-mail.
Dangdang said in a regulatory filing that 78% of its product revenue came from repeat customers in the three months ended Sept. 30.
Underwriters on the IPO were led by Credit Suisse and Morgan Stanley. The shares are expected to begin trading on the New York Stock Exchange on Wednesday under the symbol "DANG."