Netease.com, ChinaÆs second biggest internet portal, raised $69.75 million in its initial public share offering on Nasdaq last Friday, near its middle price range. The Beijing-based internet company sold 4.5 million American depositary receipts ADRs at $15.50 each.
By the close of trade, the shares had slumped 21.7% to $12.12, after earlier reaching a high of $17.25 and sinking to a low of $10.62. Merrill Lynch managed the transaction.
Netease, which offers news and information, chat rooms, community sites and online retailing, had originally planned to list in May. It was forced to delay the sale after the Chinese government imposed limits on foreign investment in domestic internet companies.