By Eric Savitz
I wonder if the people who run China-based Shanda Interactive (SNDA), or its newly public spin-off Shanda Games (GAME), know that in Yiddish the word “shanda” refers to something that is deeply shameful. You might say something like, “Oy, what a shanda that the rabbi is eating a ham sandwich on Yom Kippur!” Or alternatively, “This could be a promising stock, what a shanda that the bankers were such a bunch of schmegeggeies.”
Well, this Shanda Games deal is looking like something of shanda.
This morning, Shanda Games went public with an offering of 83.5 million American Depositary Shares at $12.50, of which 13,043,500 ADSs are offered by Shanda Games, and 70,456,500 by parent Shanda Interactive. The size of the offering was increased by 20 million shares over previous expectations. Raising $1 billion, it was the biggest IPO of the year to date. But apparently, they were a little too greedy: look what happens if your underwriters behave like a bunch of chazzers.
GAME not been well received: the stock has fallen 83 cents, or 6.6%, to $11.67. And parent Shanda Interactive shares are getting hit even harder: SNDA is down $5.83, or 10.3%, to $50.94. |
