Ossen Innovation Co., the Shanghai- based maker of rare earth-coated steel materials used in roads and bridges, raised $22.5 million in an initial public offering, capping a record year for Chinese IPOs in the U.S.
Ossen sold 5 million American depositary receipts at $4.50 each after originally offering 7 million ADRs for as much as $9 apiece, its filing with the Securities and Exchange Commission and data compiled by Bloomberg show. Ossen, which chopped its sale by 64 percent to attract enough buyers, will start trading today on the Nasdaq Stock Market under the ticker OSN.
The offering is the 41st U.S. IPO by a Chinese company in 2010, exceeding the 37 completed in 2007, data compiled by Bloomberg show. Three of the ten best performing IPOs on New York exchanges have come from China this year, while mainland companies gained more than twice as much as other newly U.S. listed companies on the first day of trading. Online companies Beijing-based Youku.com Inc. and E-Commerce China Dangdang Inc. surged more than 86 percent in their debuts this month.
Companies from China have accounted for almost 25 percent of the IPOs completed in the U.S. this year, according to data compiled by Bloomberg, raising almost $4 billion.
While Mainland IPOs have climbed an average of 17 percent in first-day trading this year, versus a 6.8 percent gain for all other U.S. offerings, Youku.com, China Dangdang and Beijing- based ISoftStone Holdings Ltd. are the only ones to advance more than 5 percent since the government said on Nov. 17 that it may impose price controls.
Six other Chinese companies that completed sales from Nov. 17 have retreated, leaving buyers with losses.
Ossen more than tripled its net income in the six months ended June 30 from the year-earlier period, as revenue increased 45 percent, its prospectus said.
Global Hunter Securities LLC and Knight Capital Group Inc. led the offering for Ossen, which will use the proceeds to expand its factory and add production lines.
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