[Posted on November 7, 2007 - 12:51 PM]
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DiggAnother day, another high-flying Chinese technology IPO. Tearing off the runway Wednesday is AirMedia Group Inc. [AMCN], China's largest digital media network. American depositary shares of the company, which operates most of the digital TV screens that display advertisements in China's largest airports, began trading Wednesday on Nasdaq in a $225 million IPO. The shares rose 41% in their early afternoon debut. The new issue follows Tuesday's stellar IPO of Chinese e-commerce company Alibaba.com Ltd. [1688.HK], whose offering soared nearly 200%. Alibaba is coming back to earth in a hurry, though, with the stock down 17.4% to $32.60.
Not all new issues of China companies are posting big initial gains. Though it's not a tech company, shares of Agria Corp. dipped 10% in their debut Wednesday. The agricultural products firm's weak performance could dampen AirMedia shares, even though last night AirMedia's underwriters were confident enough to price the IPO at $15 per share, above its previous range of $12 to $14.
Herman Man Guo, the company's CEO and founder, is AirMedia's largest shareholder with nearly half the company's shares. - Olaf de Senerpont Domis
See Nov. 6 story from Tech Confidential
See AirMedia profile from Renaissance Capital's IPOhome
See AirMedia's S-1 from SEC.gov
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