India's Wipro struggles to complete debut ADR offering

IndiaƆs largest company by market capitalization has struggled to complete its debut ADR offering in the face of testing market conditions.

A 16% spike in the companys share price between the close of books on October 18 and pricing in New York on October 19 left the transaction somewhat in disarray. The situation was further complicated by the fact that few investors believed the sudden surge to be more than a one-day correction and were consequently reluctant to countenance any matching increase in ADR pricing.

Final pricing at $41.375 therefore represented parity to the Rp1,916 underlying close on October 18 and a 16% discount to the following day. In total, some 2.75 million units were sold on a one-for-one basis, with an additional 412,500 share greenshoe also available. Morgan Stanley Dean Witter is lead...

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