HiSoft Technology International Ltd. and its stockholders priced American Depositary shares of its initial public offering at $10 each, below the expected range, the company said Wednesday.
HiSoft, a Chinese software-development outsourcing service, raised $74 million. Each ADS represents 19 common shares of the company.
HiSoft had expected the ADSs to price from $11 to $13 apiece. Volatile stock markets and general uncertainty about the strength of the global economy are forcing companies to accept less for their IPO shares than they had expected. HiSoft will be the 11th company to go public this month, and the eighth to price below or at the bottom of expected ranges. Six companies have canceled or delayed offerings in June.
The company sold 6.4 million ADSs, while shareholders offered 1 million. Underwriters led by Deutsche Bank may buy another 1.1 million U.S.-listed shares to cover excess demand.
HiSoft plans to use the proceeds for general corporate purposes.
While its revenue dropped in 2009 from the previous year, it posted a yearly net profit of $7.4 million after four straight years of net losses.
Shares are expected to trade Wednesday under the symbol “HSFT” on the Nasdaq Global Market.
Source:http://www.businessweek.com/ap/financialnews/D9GLJ4N00.htm
