Is the Fuwei Films IPO the Next eFuture?

On December 22, Fuwei Films Co. Ltd. (FFHL), a maker of specialty plastic film used in a variety of industries, reported that its initial public offering raised $35.7 million. The company sold 4.3 million shares at $8.28 per share. Shares have continued to rise since the initial public offering, closing up $4.50, or 34.62%, in today's session to $17.50 on heavy volume of nearly 7.5 million shares.

Fuwei Films stock price appears to be following in the footsteps of eFuture Information Technology Inc. (EFUT). e-Future, another new Chinese issue, completed the IPO process back in November when it sold 1.13 million shares at $6.00 per share. It began trading on the NASDAQ and just barely a week after its debut, it hit a high of $49.83 per share. The small float clearly played a role in enabling such a large appreciation in price, and with Fuwei Films also boasting a small float, the stock is poised to close well above last week's high of $15.79 as momentum traders continue to buy shares.

FFHL 10-day chart: