Two Chinese companies making initial public offerings (IPOs) on the Nasdaq raised significantly less than they had hoped, the latest in a string of Chinese listings to lower their targets amid cooling investor sentiment, reported Caixin.
The two disappointing listings signal that investors are no longer content to blindly sink money into rapidly growing, money-losing Chinese companies. The change has hammered valuations as startups slash their IPO targets to adapt to the new environment.
36Kr Holdings Inc., a Beijing-based news and data provider, raised $20 million in its Friday debut. It finished the day down 10%, after slashing its initial offering from 3.6 million to 1.4 million American depositary shares at $14.50 apiece, the low end of its indicative price range. The firm initially aimed to raise $100 million, according to a prospectus filed with the US Securities and Exchange Commission in September.