HiSoft Technology International Ltd., a Chinese software-development outsourcing service, is expected to raise more than $66 million this week through an initial public offering.
The company is offering 6.4 million American Depositary Shares, or ADSs, and selling shareholders are selling 1 million. Each ADS represents 19 common shares, for a total of 140.6 million shares.
The company estimated in a regulatory filing that the offering would raise $66.4 million, assuming a price of $12 per ADS, the midpoint of its estimated price range. HiSoft plans to use the proceeds for general corporate purposes
The company’s net revenue hit $91.5 million in 2009, more than 5 times the amount from 2005, but below revenue of $100.7 million in 2008, according to a regulatory filing with the U.S. Securities and Exchange Commission. It recorded a net profit of $7.4 million in 2009 after recording losses in the previous four years.
The company’s biggest customers last year were General Electric Co., Microsoft Corp., Nomura Research Institute Ltd., and UBS AG.
Its principal offices are in Dalian, China.
Source:http://www.businessweek.com/ap/financialnews/D9GKCK004.htm
