China’s Cosmetics Retailer Jumei Prices IPO and Shares Soar.
China’s leading online retailer of beauty products, Jumei International Holding Limited saw its shares soar after its very first trading on the New York Stock Exchange (NYSE) During Friday.
Jumei had announced on Friday that it has priced its initial public offering (IPO) to be a total of 11.14 million American depository shares (ADSs) at 22.oo U.S. dollars per DS for a total offering that this size of around 245.1 million dollars, assuming the underwriters do not change their option to purchase additional ADSs, Jumei said during a statement.
Jumei’s shares were traded under the ticker symbol “JMEI,” with each DS representing one Class A ordinary share of the company. Jumei shares opened up at total of 27.25 dollars per share before finishing with a 9.91 percent higher to end at 24.18 dollars apiece after its first day of trading.
Founder and Cheif Executive officer of Jumei, Leo Ou Chen had told reporters that he was highly satisfied with the company’s stocks performance.
”Bucking the trend of the current volatile market, the surge of Jumei’s shares suggested investor and market recognition for the company.”
Jumei’s IPO will help the company “cooperate with international brands and partners to better serve its domestic consumers,” Chen said.
Partner at J.Streicher & Co.LLC and a trader at the NYSE, Mark Otto stated that it’s a extremely pleasant to see Jumei’s shares post vigorous gains about its trading debuts.
“Definitely, there has been a lot of interests in it, so the volume is extraordinary.” He stated
According to a report done by the research firm Frost & Sullivan, Jumei is China’s number one online retailer for beauty products as measured by gross merchandise volume with a market share of up to 22.1 percent during 2013.
Ottol commented that the success with this company in particular is its specialty in selling cosmetics online as its major focusing points, instead of a general vending like other commerce.