China Xiniya, Zogenix Raise $144 Million in U.S. IPOs
Stock Chart for China Xiniya Fashion Ltd (XNY)
China Xiniya Fashion Ltd. (XNY) sold its $88 million U.S. initial public offering at the top of the price range, while Zogenix Inc. (ZGNX), a developer of treatments for central nervous system disorders, raised $56 million.
China Xiniya, a designer of men’s business clothes in China’s Fujian province, sold 8 million American depositary receipts at $11 apiece, according to a filing with the Securities and Exchange Commission and data compiled by Bloomberg. San Diego-based Zogenix priced 14 million shares at $4 apiece after originally offering 6 million at $12 to $14.
The deals followed the biggest week for U.S. initial sales since March 2008, according to data compiled by Bloomberg. The IPO market has stabilized after 61 offerings were postponed or withdrawn this year, with companies from General Motors Co. (GM) to LPL Investment Holdings Inc. (LPLA) raising more than $17 billion combined last week as the Standard & Poor’s 500 Index (SPX) traded near a two-year high.
“You’re seeing a continuation of that confidence in the equity markets,” said Sean Kraus, who oversees about $2.2 billion as chief investment officer at Citizens Business Bank in Pasadena, California. Investors are “a little bit more comfortable with IPOs, even those that may not have been able to get done a few months ago,” he said.
China Xiniya slipped 2 percent to $10.78 at 10:36 a.m. in New York Stock Exchange trading. Zogenix was up 4.3 percent to $4.17 in Nasdaq Stock Market trading after earlier surging as much as 34 percent.
Cowen & Co. led China Xiniya’s offering. The designer and manufacturer of men’s business apparel and accessories will use proceeds from the IPO to build new manufacturing facilities, open stores and develop new products, the prospectus said.
Chinese companies have posted four of this year’s ten best performances among IPOs on New York exchanges this year, data compiled by Bloomberg show. The country’s economy will grow 9 percent next year, more than three times as fast as the U.S., according to estimates compiled by Bloomberg.
ChinaCache International Holdings Ltd. (CCIH), the Beijing-based provider of content for business websites, had the biggest first-day rally on New York exchanges in three years, jumping 95 percent on Oct. 1, data compiled by Bloomberg show.
SouFun Holdings Ltd. (SFUN), the Beijing-based operator of China’s largest property website, surged 73 percent on Sept. 17 after selling its $125 million IPO at the top of the forecast range.
Syswin Inc. (SYSW), a Beijing-based real estate agency, delayed its $135 million U.S. IPO scheduled for yesterday, data compiled by Bloomberg show. New York-based Morgan Stanley (MS) is leading the offering, the prospectus said.
Wells Fargo & Co. (WFC) of San Francisco and Boston-based Leerink Swann & Co. arranged Zogenix’s sale. The company will use proceeds to fund clinical trials and the commercialization of its treatment for migraines, according to the SEC filing.
Zogenix, which had no revenue until this year, posted sales of $14.6 million in the first nine months of 2010, the filing said. The company’s net loss widened to $71.4 million from $39.7 million a year earlier.
GM of Detroit sold $15.8 billion of common shares last week in the second-largest U.S. IPO on record, data compiled by Bloomberg show. Boston-based LPL, the brokerage and investment advisory firm owned by TPG Capital and Hellman & Friedman LLC, raised $517 million including its overallotment option.
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