Two of the upcoming US-listed IPOs planned for this month are companies based in China.
China Real Estate Information, an e-House China spin-off of its real estate information and consulting business, plans to raise $226 million by offering 18,000,000 at a price range of $11.80 to $13.30. At the mid-point of the proposed range, China Real Estate Information will command a market value of $1.9 billion. The Shanghai ,China-based company plans to list on the NASDAQ under the symbol CRIC. Credit Suisse and UBS Investment Bank are the lead underwriters on the deal.
ZST Digital Networks, a Chinese provider of digital and optical network equipment to cable system operators, plans to raise $25 million by offering 3,125,000 at a price range of $7.50 to $8.50. At the mid-point of the proposed range, ZST Digital Networks will have a market value of $91.8 million. The Zhengzhou ,China-based company plans to list on the NASDAQ under the symbol ZSTN. Rodman & Renshaw is the lead underwriter on the deal. The deal was was originally supposed to price this week, but has been rescheduled for next week.
So far this year, there have been seven ADR IPOs, representing 19% of the 37 US-listed IPOs completed, and nearly half of the total proceeds raised. This was mainly due to the $7.1 billion raised by Brazil-based Banco Santander (BSBR), the country's fourth largest bank.
The two IPOs planned for this month are keeping with the trend, as four of the seven ADRs are also China-based companies. Online game developer and Soho-spinoff Changyou.com (CYOU) raised $120 million in April, and has been a top performer this year. Duoyuan Global Water (DGW), also a top IPO performer, raised $88 million in June. The Beijing-based company is a leading China-based manufacturer of water treatment equipment. Chemspec International (CPC), the largest manufacturer of fluorinated specialty chemicals in China, also raised $72.8 million in June. The largest China-based offering was Shanda Interactive (GAME), also an online game developer, which raised just over $1 billion by offering 83,500,000 ADSs at $12.50 last month. The Shanda Interactive spin-off has not performed as well as peer Changyou.com, and is currently trading below its offer price.
