There were two hot Chinese IPOs that debuted today and to call them ‘hot’ may be an understatement. Seeing two near-doubles in a single day is not the norm even for a bull market. These two are in Youku.com Inc. (NYSE: YOKU) and E-commerce China Dangdang Inc. (NYSE: DANG).
Youku.com Inc. (NYSE: YOKU) priced 15,847,700 American Depositary Shares at $12.80 per share. E-commerce China Dangdang Inc. (NYSE: DANG) priced 17,000,000 American Depositary Shares at premium of $16.00 per ADS.
UPDATED PRICES FOR 4:00 CLOSE: Dangdang closed at $29.91 versus a $16.00 pricing and a low of $23.80 on almost 29.5 million shares. Youku.com closed at $33.44 versus a $12.80 price and versus a low of $25.57 on over 16.8 million shares.
Chinese IPOs have been extremely hot in 2010. If you want to know why these are so hot that is a simple reasoning. For DANG, think of it as the emerging version of Amazon.com Inc. (NASDAQ: AMZN) in China. For YOKU, think of it as the emerging version of YouTube that is owned by Google Inc. (NASDAQ: GOOG).
At 10:27 AM EST we have seen YOKU trade at $27.14 on more than 6.1 million shares already and the post-IPO range is $25.57 to $30.00. At 10:27 AM EST we have seen DANG trade at $27.25 on more than 13.3 million shares already and the post-IPO range is $23.80 to $30.00.
JON C. OGG