LightInTheBox Rises as Volume Surges on Aokang Stake PurchaseRichard Richtmyer
LightInTheBox Holding Co. jumped to a two-week high as trading volume surged after the Chinese online retailer said Zhejiang Aokang Shoes Co. has agreed to purchase more than a quarter of the company’s equity at a premium to Tuesday’s closing price.
The American depositary receipts gained 2.7 percent to $5.28 at the close of trading in New York after rallying a record 26 percent. More than 3.7 million shares changed hands, about 29 times the daily average of the past three months. The ADRs closed at $5.14 on Tuesday.
The stock rallied after LightInTheBox, which sells Chinese-made goods to customers overseas, said the shoe and leather products maker agreed to pay $6.30 per ADR to buy the stake. The companies said they plan to use the strategic investment to develop a global “Internet-Plus” strategy, referring to a government initiative to use Web innovation to invigorate manufacturing.
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