China continues to dominate US IPO landscape
China-based ADRs have continued to flood the US markets, accounting for 18 of the 49 companies to go public over the past three months and raising an aggregate of $2 billion in gross proceeds. Given that many of these deals have been well-received by growth-hungry US investors with an average post-IPO return of 16%, China-based ADR activity shows no signs of slowing. Of the ten IPOs on the IPO calendar for this week, six are Chinese companies. Two in particular have attracted significant levels of interest: E-Commerce China Dangdang (DANG), which has been called the Amazon of China, and Youku.com (YOKU), a cross between the US's Hulu and YouTube.
E-Commerce China Dangdang and Youku.com: China's Amazon and Youtube
E-Commerce China Dangdang plans to raise $238 million by offering 17 million ADSs at a price range of $13-$15 after upping its price range from $11-$13 in a sign of strong deal demand. The Beijing-based company, which is backed by co-founders (36% stake) as well as a group of well-known sponsors including Tiger Global (19%) and DCM Venture (7%), expects to list on the NYSE under the symbol DANG with Credit Suisse and Morgan Stanley acting as lead underwriters on the deal. Youku.com, also based in Beijing and owned by management (35%) and a handful of venture backers (together 44%), expects to raise $146 million by offering 15.4 million ADSs at a range of $9-$11. Youku intends to list on the NYSE under the symbol YOKU. Goldman Sachs is the lead underwriter on the deal.
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