2010-12-21 17:12

New York - Ossen Innovation Co, the Shanghai based maker of rare earth-coated steel materials used in roads and bridges, raised $22.5 million in an initial public offering (IPO), capping a record year for Chinese IPOs in the US, Bloomberg News reported Tuesday.

Ossen sold five million American depositary receipts (ADR) at $4.50 each after originally offering seven million ADRs for as much as $9 apiece, its filing with the Securities and Exchange Commission and data compiled by Bloomberg show. Ossen, which chopped its sale by 64 percent to attract enough buyers, will start trading on the Nasdaq Stock Market under the ticker OSN.

The offering is the 41st US IPO by a Chinese company in 2010, exceeding the 37 completed in 2007, the report said.

Three of the ten best performing IPOs on New York exchanges have come from China this year, while mainland companies gained more than twice as much as other newly US listed companies on the first day of trading. Online companies Beijing-based Youku.com Inc and E-Commerce China Dangdang Inc surged more than 86 percent in their debuts this month, according to the report.

Companies from China have accounted for almost 25 percent of the IPOs completed in the US this year, according to data compiled by Bloomberg, raising almost $4 billion.

Six other Chinese companies that completed sales from Nov 17 have retreated, it said.

Ossen more than tripled its net income in the six months ended June 30 from the year-earlier period, as revenue increased 45 percent, the report said, citing the company's prospectus.