China’s ISoftStone Climbs After $141 Million U.S. IPO
ISoftStone Holdings Ltd. advanced as much as 46 percent after the Beijing-based information technology services provider raised $141 million pricing its U.S. initial public offering at the top of the forecast range.
The shares climbed 30 percent to $16.86 at 10:58 a.m. in New York Stock Exchange trading after earlier surging as high as $19. The company sold 10.83 million American depositary receipts at $13 each yesterday after offering them for $11 to $13 apiece, according to a filing with the Securities and Exchange Commission and data compiled by Bloomberg. ISoftStone will use proceeds to help repay debt, the prospectus said.
The sale was the 40th U.S. IPO from a mainland company in 2010, capping a record year that exceeded the 37 deals in 2007, data compiled by Bloomberg show. While three of the ten best performing IPOs on New York exchanges have come from China this year, six of the nine that completed sales since Nov. 17 had retreated after the government said that it may impose price controls to combat inflation, data compiled by Bloomberg show.
ISoftStone’s revenue rose 50 percent to $135 million in the nine months ended Sept. 30 from the year earlier period, the filing said. ISoftStone posted a $272,000 profit for the first three quarters of 2010, $5.4 million less than a year earlier.
UBS AG of Zurich and JPMorgan Chase & Co. and Morgan Stanley in New York led the IPO.
International Business Machines Corp. of Armonk, New York, Paris-based Alcatel-Lucent SA and Bank of China Ltd. in Beijing are customers of ISoftStone, according to the prospectus.
To contact the editor responsible for this story: Daniel Hauck at email@example.com.