E-Commerce China DangDang, a China-based online book retailer part owned by media company International Data Group (IDG), completed its New York flotation above its target range to raise $272m before expenses.
Investment banks Credit Suisse and Morgan Stanley were co-lead underwriters on the initial public offering (IPO), which issued 17 million American depository shares (ADS) at $16 each, rather than in the expected $11 and $13 range, according to its regulatory filing.
The 17 million ADSs represent 85 million common A shares and a further 2.55 million ADSs can still be sold if demand is high enough. The company made $197m through the IPO with existing shareholders selling $56.75m of stock.
IDG Technology Ventures, a corporate venturing unit of IDG, owns 21.4 million B shares (6.8%) in DangDang, but although it did not sell any shares the proportion it holds of the security class increased as other B shares were converted to A shares.
DangDang has seen a 50% increase in turnover in the first nine months of the year to $234.8m and turned a slight loss into $2.4m net income, compared to the same period last year.