ShangPharma Falls 15% in Market Debut
October 20, 2010, 6:55 am
ShangPharma’s stock seesawed in its market debut, hitting the market above the company’s initial offering price of $15, but quickly diving to close down 15 percent.
Most of the Chinese companies with strong showings recently have been plays on the growth of China’s economy, whereas ShangPharma was more a play on an outsourcing trend among pharmaceutical companies, an analyst at Renaissance Capital, Nick Einhorn, told Reuters.
The clinical research organization’s American Depositary Shares were priced at $15 each, near the midpoint of the company’s $14.50 to $16.50 range, The Associated Press said.
The stock opened on Tuesday at about $15.85, or nearly 6 percent above the offering price. Shares then quickly fell back, closing at $12.75.
The company, based in Shanghai, provides drug research and development services for pharmaceutical and biotechnology companies. It is offering 3.2 million depositary shares, each of which is equal to 18 ordinary shares.
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