ISoftStone posts 28% gain on New York debut

Chinese IT firm ISoftStone Holdings (ISS.NYSE) saw its stock rise 28% on the first day of trading on the New York Stock Exchange on Tuesday, the Wall Street Journal reported. Shares reached a peak of US$16.69 during trading but closed at US$16.62. The company raised US$141 million through its IPO, pricing its shares at US$13 each. ISoftStone provides IT outsourcing services to a global base of clients, although 56% of its net revenue derives from China. Net revenue rose 50% year-on-year to US$135 million in the first nine months of 2010. However, net income fell to US$300,000 from US$5.7 million a year earlier, primarily due to share-based compensation charges linked to employee and director options. Chinese listings in the US have enjoyed a mixed fortnight: internet TV firm Youku.com (YOKU.NSYE) posted huge gains but mobile application store Sky-mobi (MOBI.NASDAQ) and film distributor Bona Film Group (BONA.NASDAQ) recorded the worst and second-worst first-day declines of the year.