Money

Dangdang IPO prices above range

(Agencies)
Updated: 2010-12-08 10:15

E-Commerce China Dangdang Inc priced shares in its initial public offering (IPO) above the expected price on Dec 6, raising 14.3 percent more than expected, Reuters reported on Dec 7, citing an underwriter.

The top-ranked Chinese online retailer sold 17 million American Depositary Shares for $16 each, raising $272 million.

The company on Dec 6 raised the expected price range of its IPO to $13 to $15 per share from $11 to $13 per share. It had planned to sell 17 million shares.

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Dangdang's IPO comes soon after that of China-based online retailer Mecox Lane Ltd. Soon after its IPO, Mecox reported a year-on-year drop in its gross margin, causing its shares to swoon and triggering several class action lawsuits.

Dangdang competes in China with Amazon joint venture Joyo.com and Alibaba Group's Taobao. It sells books, clothing and household goods online and offers cash-on-delivery payment service in over 750 cities and towns in China, along with online payment, wire transfer and pay-by-mail.

Dangdang said in a regulatory filing that 78 percent of its product revenue came from repeat customers in the three months ended Sept 30.

Underwriters on the IPO were led by Credit Suisse and Morgan Stanley. The shares are expected to begin trading on the New York Stock Exchange on Dec 7 under the symbol "DANG."