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Sunday 27 September 2009
Shanda Games drops after raising US$1b in IPO
Shanda Games fell on its first day of trading in New York yesterday after the unit of China’s biggest online games provider raised US$1.04 billion in the largest United States-only initial public offering by a Chinese company since at least 1999.
Shanda Games fell on its first day of trading in New York yesterday after the unit of China’s biggest online games provider raised US$1.04 billion in the largest United States-only initial public offering by a Chinese company since at least 1999.
Shanda Games, controlled by Shanda Interactive Entertainment, dropped 3.1 per cent to US$12.11 in morning trading on the Nasdaq Stock Market. Shanda Interactive slid 6.7 per cent to US$53.
The mainland’s top video-game operator priced its offering at the top of an indicative range, as firms globally make bold moves to capitalise on a surge in investor confidence. Shanda’s pricing rounds off the busiest US listing week in almost two years.
“We view the third quarter of 2009 as a major inflection point in the IPO market,” said Lisa Carnoy, the global head of equity capital markets at Bank of America Merrill Lynch. “The combination of more deals, bigger deals and broader range of sectors speaks volumes about what we will see next quarter and into 2010.”
Shanda priced its American depositary shares at US$12.50 each, against a previously announced range of US$10.50 to US$12.50, a banking source said.
Flotations in the global pipeline are expected to raise US$69.7 billion, according to Thomson Reuters data, buoyed by a surge of US activity this summer, when 33 companies filed paperwork for prospective offerings, compared with four in the first half of the year.
With 28 offerings worth US$8.2 billion, Asian flotation activity nearly tripled over the preceding quarter, after seven consecutive quarters of decline. In the US, 11 deals had priced in the third quarter through Wednesday, yielding US$3.6 billion.
The quarter’s listing momentum looks set to carry into the last three months of the year. Banco Santander, the Brazilian unit of Santander, is planning an offering worth as much as US$8.6 billion that is set to list on the New York Stock Exchange and the Sao Paulo stock market next month.
Shanda Games operates games such as Legend of Mir and South Korean blockbuster Aion in China. It competes with NetEase and Tencent Holdings in China’s increasingly competitive gaming landscape.
Changyou.com, which raised US$120 million in its April listing, is the top performing US-listed flotation this year, with shares up 145 per cent since its debut. The firm was carved out from mainland internet portal Sohu.com
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Shanda Games drops after raising US$1b in IPO
Agencies in New York
26 September 2009
Shanda Games fell on its first day of trading in New York yesterday after the unit of China’s biggest online games provider raised US$1.04 billion in the largest United States-only initial public offering by a Chinese company since at least 1999.
Shanda Games, controlled by Shanda Interactive Entertainment, dropped 3.1 per cent to US$12.11 in morning trading on the Nasdaq Stock Market. Shanda Interactive slid 6.7 per cent to US$53.
The mainland’s top video-game operator priced its offering at the top of an indicative range, as firms globally make bold moves to capitalise on a surge in investor confidence. Shanda’s pricing rounds off the busiest US listing week in almost two years.
“We view the third quarter of 2009 as a major inflection point in the IPO market,” said Lisa Carnoy, the global head of equity capital markets at Bank of America Merrill Lynch. “The combination of more deals, bigger deals and broader range of sectors speaks volumes about what we will see next quarter and into 2010.”
Shanda priced its American depositary shares at US$12.50 each, against a previously announced range of US$10.50 to US$12.50, a banking source said.
Flotations in the global pipeline are expected to raise US$69.7 billion, according to Thomson Reuters data, buoyed by a surge of US activity this summer, when 33 companies filed paperwork for prospective offerings, compared with four in the first half of the year.
With 28 offerings worth US$8.2 billion, Asian flotation activity nearly tripled over the preceding quarter, after seven consecutive quarters of decline. In the US, 11 deals had priced in the third quarter through Wednesday, yielding US$3.6 billion.
The quarter’s listing momentum looks set to carry into the last three months of the year. Banco Santander, the Brazilian unit of Santander, is planning an offering worth as much as US$8.6 billion that is set to list on the New York Stock Exchange and the Sao Paulo stock market next month.
Shanda Games operates games such as Legend of Mir and South Korean blockbuster Aion in China. It competes with NetEase and Tencent Holdings in China’s increasingly competitive gaming landscape.
Changyou.com, which raised US$120 million in its April listing, is the top performing US-listed flotation this year, with shares up 145 per cent since its debut. The firm was carved out from mainland internet portal Sohu.com
Reuters, Bloomberg
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