The two IPOs planned for this week are keeping with the trend, as four of the seven ADRs are also China-based companies. Online game developer and Soho-spinoff Changyou.com (CYOU) raised $120 million in April, and has been a top performer this year. Duoyuan Global Water (DGW), also a top IPO performer, raised $88 million in June. The Beijing-based company is a leading China-based manufacturer of water treatment equipment. Chemspec International (CPC), the largest manufacturer of fluorinated specialty chemicals in China, also raised $72.8 million in June. The largest China-based offering was Shanda Interactive (GAME), also an online game developer, which raised just over $1 billion by offering 83,500,000 ADSs at $12.50 last month. The Shanda Interactive spin-off has not performed as well as peer Changyou.com, and is currently trading below its offer price.
Two of the upcoming US-listed IPOs planned for this month are companies based in China.
China Real Estate Information, an e-House China spin-off of its real estate information and consulting business, plans to raise $226 million by offering 18,000,000 at a price range of $11.80 to $13.30. At the mid-point of the proposed range, China Real Estate Information will command a market value of $1.9 billion.
The Shanghai-based company plans to list on the NASDAQ under the symbol CRIC. Credit Suisse and UBS Investment Bank are the lead underwriters on the deal.
ZST Digital Networks, a Chinese provider of digital and optical network equipment to cable system operators, plans to raise $25 million by offering 3,125,000 at a price range of $7.50 to $8.50. At the mid-point of the proposed range, ZST Digital Networks will have a market value of $91.8 million. The Zhengzhou ,China-based company plans to list on the NASDAQ under the symbol ZSTN. Rodman & Renshaw is the lead underwriter on the deal.
So far this year, there have been seven ADR IPOs, representing 19% of the 37 US-listed IPOs completed, and nearly half of the total proceeds raised. This was mainly due to the $7.1 billion raised by Brazil-based Banco Santander (BSBR), the country’s fourth largest bank.