Xunlei calls off US IPO after reducing price range

Consumer internet platform Xunlei was aiming to raise up to $122 million, but quality investors chose to stay away amid a tough market and lingering concerns about corporate governance at Chinese firms.

The uncertain market environment and concerns about corporate governance at Chinese firms took another toll yesterday when China-based consumer internet platform Xunlei decided to call off its initial public offering in the US.

The company was initially aiming to raise between $106.4 million and $121.6 million, but reduced the price range by $2 and extended the offering period by one day after failing to attract the kind of quality demand it was hoping for. At the new range of $12 to $14 per share, the minimum offering size dropped to $91.2 million and the valuation was reduced to 19.7 times 2012 earnings, but even that turned out not to...

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