Chinese auto, tech firms have lackluster debuts
(Reuters) - A Chinese auto sales company traded up slightly and a Chinese tech company fell in U.S. stock market debuts on Friday, a sign that not every Chinese companies will get a blank check in its initial public offering.
Shares of auto retailer Lentuo International Inc LAS.N opened at $8.50 in midafternoon on the New York Stock Exchange. The shares quickly retreated to trade at $8.18, up 2.3 percent from their $8 IPO price.
Earlier on Friday, Lentuo cut the terms of its IPO to 6.5 million American Depositary Shares, which it hoped to sell for $8 to $10 each. It had previously filed to sell 7.5 million shares for $11.50 to $13.50 each.
Shares of Sky-mobi Ltd MOBI.O, which sells software applications for mobile phones, opened at $6.00, or 25 percent below their IPO price. They recovered slightly to trade at $6.03 in midafternoon on the Nasdaq.
The company sold 7.3 million shares for $8 each in its IPO, raising about $58.4 million.
Underwriters on the Sky-mobi IPO were led by Citi; underwriters on the Lentuo IPO were led by Cowen and Co and HSBC.
(Reporting by Clare Baldwin, editing by Gerald E. McCormick)
Credit: Reuters (www.reuters.com)
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