Before the IPO, there was speculation that XFML would scrape its plan in light of the plunge of Chinese domestic stocks on February 27th, when major Chinese indexes lost nearly 9% in one day, triggering a round of global markets sell-off. XFML was originally priced between $12 to $14 per American depositary share [ADS] and the price was settled in the middle of the rang Thursday at $13 per ADS. Now the stock is traded at $11.12.
I have prepared $4,000 for this IPO last week at my Scottrade account. Now I am just glad I didn’t jump right in when the trading began.
Actually, Thursday’s debut of ClearWire (CLWR) should also give us some indication of the climate of IPOs. CLWR was priced at the high end of its range at $25. The stock closed at $24.80 Thursday and had dropped about $2.39 or nearly 10% again Friday.