Not every Chinese internet company enjoys a pop in their share price during IPO. ADS of NetQin, which provides mobile security services, dropped 19 percent from its offering price of US$11.5 in their debut Thursday on the New York Stock Exchange.
It is not a surprise. The company had a major scandal just before it filed its IPO plan. Government- backed CCTV accused it of cooperating with mobile phone virus maker Feeliu.
Yesterday, its share dropped further to close at US$8.4.
Last year, Sky-mobi also had a disappointing IPO, losing 33% in its IPO debut. But thanks to the effort of its CEO, Michael Song, the stock had a miraculous recovery in the following 3 months. It was trading at around US$20 just a few days ago . It dropped to US$14.8 yesterday, still 85% up from its IPO price of US$8.
I wonder what story NetQin’s CEO will tell investors to talk up his stock.
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