Xinhua Finance Media (XFML) Debut, then Sank

Xinhua Finance Media Ltd (XFML) went ahead its scheduled IPO Friday despite recent sharp decline of Chinese stocks, but the reception of this latest offering on the street was nothing but cold.

Before the IPO, there were speculations that XFML may scrape its plan in wake of the plunge of Chinese domestic stocks on February 27th, when major Chinese indexes lost nearly 9% in one day, triggering a round of global markets sell-off. XFML was originally priced between $12 to $14 per American depositary share (ADS) and the price was settled in the middle of the rang yesterday at $13 per ADS. Now the stock is traded at $11.02, lost $1.98 or more than 15% of its value.

I have prepared $4,000 for this IPO last week at my Scottrade account. Now I am just glad I didn’t jump right in when the trading began.

Actually, yesterday’s debut of ClearWire (CLWR) should give us some indication of the climate of IPOs. CLWR was priced at the high end of its range at $25. The stock closed at $24.80 yesterday and dropped about $2.39 or nearly 10% again today.

This article was originally written or modified on . If you enjoyed reading this post, please consider subscribing to my full RSS feed. Or you can also choose to have free daily updates delivered right to your inbox.


Author Info

This post was written by Sun You can find out more about Sun and his activities on Facebook , or follow him on Twitter .

Comments are closed.