Taomee opens down 5.7% after IPO

Chinese children’s media company Taomee Holdings (TAOM.NYSE) was spurned by investors on its first day of trading, Dow Jones reported. The stock opened trading at US$8.49 a share, down 5.7% from its initial public offering (IPO) price, and closed at US$8.23 per share. However, Taomee’s Chief Financial Officer Paul Keung said he was pleased that the company was able to price within its expected range. “That we were able to get it done says a lot about our company.” He also said the company managed to raise a concurrent private placement of US$10 million worth of stock with Saban Media Ventures, which committed to buying the shares at the IPO price of US$9 per share. Taomee launched in 2007 and has seen strong revenue growth – mostly from online children’s games – but also faces intensifying competition in its space. The IPO was managed by Credit Suisse (CS.NYSE) and Deutsche Bank (DB.NYSE).