Jiayuan Falls in First Day of Trading After $78.1 Million IPO
Jiayuan.com International Ltd., the operator of a dating website in China, fell as much as 11 percent in Nasdaq Stock Market trading after raising $78.1 million in a U.S. initial public offering.
The Beijing-based company dropped 40 cents, or 3.6 percent, to $10.60 as of 2:50 p.m. New York time, after falling as much as $1.24 earlier. Jiayuan.com sold 7.1 million American depositary receipts at $11 each, according to a statement today. The company had offered them for $10 to $12 apiece, according to a filing with the U.S. Securities and Exchange Commission.
Jiayuan.com is one of 10 companies that planned IPOs on U.S. exchanges this week, the most since December, according to data compiled by Bloomberg. Renren Inc., the Beijing-based operator of a real-name social-networking site, raised $743.4 million in an IPO earlier this month, the first social- networking site to go public in the U.S.
Proceeds from Jiayuan.com’s offering will be used for general corporate purposes and to distribute unpaid dividend payments to preferred-share holders, according to the prospectus. The offering was led by Bank of America Corp. (BAC) and Citigroup Inc. (C)
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