Indian Film Firm Eros Sees Stock Drop Early in U.S. Debut After Pricing Below Target
The Bollywood company, which produces and distributes movies in more than 50 countries, was previously listed on the London Stock Exchange.
Eros International, which produces and distributes Indian films in more than 50 countries, made its U.S. stock market debut Wednesday after pricing its stock offering below its previous target.
After pricing at $11, the stock initially rose slightly and went as high as $11.40 before dropping. As of 10:30 a.m. ET, the stock was down 2.3 percent at $10.75.
The move to the New York Stock Exchange brings to an end the firm's previous listing on the London Stock Exchange. The stock of a subsidiary also trades on exchanges in India.
Eros said its U.S. public offering priced 5 million shares at $11 each, raising $55 million.
Previously, the Mumbai, India-based company with a U.S. office in Secaucus, New Jersey had targeted a price of $12 per share. That was down from an original target of offering 12.5 million shares for $15-$17 each.
Eros, founded in 1977, had $208 million in revenue for the 12 months ended Sept. 30. The company's NYSE listing is under ticker symbol EROS.
Eros, is one of 12 companies scheduled to go public in the U.S. this week amid a hot IPO market helped by the recent stock market debut of social media firm Twitter.
Because of the company's previous London listing and Indian listing, some observers don't call Eros' stock sale an initial public offering.
The Bollywood player has struck deal with such big entertainment firms as Endemol and HBO. A recent pact with Endemol India called for the partners to produce three films along with original TV programming. Eros last year also agreed with HBO Asia to jointly launch two channels in India.