shanda-games-falls-14-after-raising-1-billion

Shanda Games falls 14% after raising $1 billion

The IPO is significantly upsized and prices at the top, but the online gaming company disappoints on its first day of trading.

Shanda Games has raised $1 billion in the largest US initial public offering so far this year. The company, a spin-off of Shanda Interactive Entertainment, ran afoul when it started trading on Friday, however, finishing its first day of trading down by 14%.

The company initially planned to sell 63 million American depositary shares ADS, but upsized the deal by adding an additional 20.5 million ADS into the offering. This decision, made in the middle of last week due to high levels of demand, increased the maximum base deal size to $1.04 billion, from $788 million.

And the maximum is what the company got the deal priced at $12.50 per ADS, the top...

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