AAA DangDang adds detail to IPO book

DangDang adds detail to IPO book

E-Commerce China DangDang, a China-based online book retailer part owned by media company International Data Group (IDG), has set the range for its $255m flotation in New York.

Investment banks Credit Suisse and Morgan Stanley are co-lead underwriters on the initial public offering, according to its regulatory filing, which plans to issue 17 million American depository shares (ADS) at between $11 and $13 each. The 17 million ADSs represent 85 million common A shares and a further 2.55 million ADSs can be sold if demand is high enough.

IDG Technology Ventures, a corporate venturing unit of IDG, owns 21.4 million B shares (6.8%) in DangDang, with hedge fund Tiger Global Management 23.9% and DCM (formerly Doll Capital Management) 8.7%.

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.

Separately, 121 companies aiming to raise $46bn have pulled plans to float, according to data from Thomson Reuters, in an editorial by Rob Cox on peHub Wire. The last time so many IPOs were withdrawn was in the financial crisis of 2008, though the volume targeted then was just two-thirds of what has already been abandoned this year, he added.  

 

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