Netease.com, ChinaÆs second biggest internet portal, raised $69.75 million in its initial public share offering on Nasdaq last Friday, near its middle price range. The Beijing-based internet company sold 4.5 million American depositary receipts (ADRs) at $15.50 each.
By the close of trade, the shares had slumped 21.7% to $12.12, after earlier reaching a high of $17.25 and sinking to a low of $10.62. Merrill Lynch managed the transaction.
Netease, which offers news and information, chat rooms, community sites and online retailing, had originally planned to list in May. It was forced to delay the sale after the Chinese government imposed limits on foreign investment in domestic internet companies.
Sohu.com, the third biggest internet portal in China which offers similar services to Netease, plans to list on 12 July. The company has set the price range at between $16 and $19 each. It will issue 4.6 million new shares with the aim of raising as much as $87.4 million. Sohu.com kicked off its roadshow in Hong Kong last Thursday.
