ChinaCache IPO prices above expectations, and shares more than double in afternoon trading
By APFriday, October 1, 2010
ChinaCache International shares surge after IPO
NEW YORK — Shares of ChinaCache International Holdings Ltd. doubled in value Friday in the company’s first day of public trading.
ChinaCache helps businesses deliver content and applications over the Web and does most of its business in China. Its initial public offering priced at $13.90 and shares have surged as high as $30.70. In afternoon trading the stock rose to $28.06.
The company expected the offering of 4.5 million shares to price at $10 to $12 per American depositary share. Existing stockholders were expected to sell another million shares. The company’s trading symbol is “CCIH.”
ChinaCache International has not yet turned a profit, but in a filing with the Securities and Exchange Commission, it said its clients have more than doubled over the past three years. While its revenue declined in 2009, it was still up significantly from previous years.
