AirMedia Is Latest China
IPO
To Soar, but Agria Stumbles
By LYNN COWAN
November 8, 2007; Page C3
U.S. investors showed they still can be selective about
buying initial public offerings of stock, even those from companies
based in China.
While an IPO from advertising firm AirMedia Group Inc.
of Beijing rallied 39% on Nasdaq, a deal from Chinese farm-products
company Agria Corp. fell 27% on the New York Stock Exchange.
Two health-care-related IPOs from U.S. companies also
encountered mixed receptions, with wrinkle-treatment company Bioform
Medical Inc.'s stock gaining 7% and biopharmaceutical company ARYx
Therapeutics Inc.'s losing 19%.
AirMedia changed hands at $20.90 a share in Nasdaq
trading, up from its IPO price of $15. The company, which focuses on
digital ad displays at Chinese airport and planes, sold 15 million
American depositary shares above its expected $12 to $14 price, which
was boosted by $3 a share earlier in the week by underwriters Morgan
Stanley and Lehman Brothers Holdings Inc.
AirMedia began operations in August 2005 but already
controls more than 95% of the advertising screens in the 15 largest
Chinese airports.
Agria is the first Chinese IPO in the U.S. to flop
since handset company Qiao Xing Mobile Communication Co. lost 6%
during its May debut, according to Thomson Financial.
Agria was at $12.06 a share, down from its $16.50 IPO
price. A total 17.2 million ADS's were sold, at the high end of its
expected price range set by lead manager Credit Suisse Group.
Write to Lynn Cowan at
lynn.cowan@dowjones.com1
|