Going into this week, China Nepstar (NYSE: NPD) had a price range on its public offering at $11.50-$13.50. Well, as is usual for Chinese IPOs, it was too low. Thursday, China Nepstar priced its shares at $16 and as of this writing, the stock is up 17%.
China Nepstar is the largest retail drugstore chain in China, with a network of 1,791 stores in 62 cities. Yet, China Nepstar’s market share is only 0.5%. But with its IPO, the company is likely to scoop up a variety of competitors.
China Nepstar has another important differentiation: proprietary brands. In other words, such things are a nice margin boost.
Over the past three years, the compound annual growth rate of revenues has been about 43.4%. Last year, there was about $227.6 million in revenues. And, as for the first half of this year, revenues came to $124.3 million.