When 2 IPOs Nearly Double (YOKU, DANG, AMZN, GOOG)

Posted in General 
December 8th, 2010

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

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