Shanda Interactive Entertainment has slashed the size of its initial public offering by 49 per cent, reflecting tough market conditions and concerns about slower growth in the mainland economy.
The Shanghai-based online gaming company has raised US$152.35 million through its Nasdaq listing, compared with an earlier target of $298.73 million.
Pricing was set at US$11 per American depositary receipt (ADR), lower than the previously indicated range of $13 to $15.
Shanda shares debuted in New York yesterday at US$11.11 and immediately shot up to $12.50. By late morning, the counter was trading at $11.75.
KGI Asia Securities associate director Ben Kwong said fears the United States Federal Reserve could raise interest rates soon were weighing on the market. In addition, efforts to slow the mainland economy had hampered the listing attempts of Chinese companies.
'All this means any IPO will be difficult unless they offer at a very attractive price,' Mr Kwong said.
China Shipping Container Lines has reduced the size of its offer to US$1.3 billion to $1.5 billion, while mainland foundry CSMC Technologies has cut the size of its planned IPO by half to $100 million.