CMGE lists on Nasdaq by way of introduction
Updated: 2012-09-26 06:36:00
NEW YORK, September 25 (Xinhua) -- China Mobile Games and Entertainment Group Limited (CMGE) went public on the Nasdaq Stocks Exchange on Tuesday, making it the first Chinese company to list in the U.S. market by way of introduction.
The company's American depositary shares (ADS), each representing 14 Class A ordinary shares, began to trade on the Nasdaq under the ticker symbol CMGE but failed to settle a price on its debut.
As of Tuesday's close, investors had put in a high bid price of 3.90 dollars per share, not even close to the ask price of 40 dollars.
Unlike other Chinese companies who went public in the United States through Initial Public Offering or Reverse Merging, CMGE landed on the NASDAQ by way of introduction without any financing activities, according to the company.
Zhang Lijun, the company's chairman, told Xinhua reporter in an exclusive interview that the company has no urgent need for funding at the time and he regarded the current listing as a way to expand the company's brand among game developers, distributors and users both at home and abroad
However, the company would be willing to finance in the U.S. market when the environment toward Chinese companies becomes more favorable.
CMGE was the first Chinese company to list on the Nasdaq and the second to go public in the U.S. financial market this year. Prior to that, only Vipshop Holdings, a Guangzhou-based online retailer, got listed on the New York Stock Exchange in March, reflecting the challenges Chinese companies were facing after a slew of accounting fraud accusations.
CMGE is a leading mobile game company in China with the largest market share among mobile game developers in terms of revenues in 2010 and 2011.
"After the listing, CMGE will continue to put special emphasis on products targeting smartphone markets, as we believe smart phones will be in dominant position in the next few years," said Zhang Lijun.