In another example of what has been a disappointing year for IPO’s, Chinese shipping company Best Inc. had to severely downgrade its share price at offering. Via businessinsider.com
The offering, which had the aim of raising $932 million, came up well short of the mark, only netting $450 million.
Best, which is backed by Alibaba Group, priced 45 million American depository shares (ADS) at $10 each, the bottom of a $10 to $11 indicative range, Thomson Reuters publication IFR said on Wednesday, citing people familiar with the deal. The company had initially expected a price range of $13 to $15 per ADS and an IPO consisting of 53.56 million new shares and 8.54 million existing shares.
The failure to attain the targeted goals are a major hit to keynote investor Jack Ma, CEO of Alibaba. The company holds significant shares in the company and it will be interesting to see how they adapt to this new reality.
To learn more, go to businessinsider.com. If you haven’t already, why not subscribe to our free newsletter and get more updates like this delivered straight to your inbox?
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