AAA ISoftStone floats to range top

ISoftStone floats to range top

ISoftStone, a China-based provider of technology consulting and software services, has raised $140.8m in its New York Stock Exchange flotation.

The company sold 7.3 million American depository shares (ADS) at $13 each, which was the top of its expected range, to raised $88.2m, according to its regulatory filing. Shareholders sold 3.5 million ADSs to raise $42.3m and there was $10.3m in expenses.

Fidelity Growth Partners Asia, previously known as Fidelity Asia Ventures and the corporate venturing unit of US mutual fund manager Fidelity, owns 24% of iSoftStone but did not sell any shares at its portfolio company’s initial public offering.

AsiaVest Partners, a venture capital partnership between AsiaVest Investment and Société Générale’s asset management subsidiary TCW Group, owns 28.8% and will sell nearly a quarter of its holding, while Infotech Ventures 9.1% will be reduced by a tenth.

A further 1.6 millions ADSs, each representing 10 common shares, can be sold by the underwriting investment banks Morgan Stanley, JP Morgan and UBS if there continues to be enough demand.

According to research by news provider Fortune, using data from Thomson Reuters, there have been 21 China-based companies floating on US stock exchanges raising more than $2.2bn by last Friday and before iSoftStone. There have been 42 US-based, venture capital-backed companies that have raised nearly $3.7bn.

Between 2002 and 2009, there were 22 China-based companies with IPOs on US exchanges, compared to 329 for US businesses, Fortune said.

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