Shares of Qunar Cayman Islands Ltd doubled in their market debut, underscoring revived investor interest in Chinese companies as they return to the US IPO market after a series of scandals led to a collapse in listings in 2012. The number of Chinese companies listing in the United States plunged from a high of 40 in 2010 to just two in 2012 after a rash of accounting scandals and ensuing share sell-off that led to a wave of delistings.
Five Chinese companies have listed on the Nasdaq and New York Stock Exchange so far this year, including Qunar, which is controlled by Chinese internet giant Baidu Inc.
Qunar's shares, which were sold at $15 each, hit a high of $34.99 on Friday, valuing the company at about $11.8 billion. Qunar, which means "where are you going" in Chinese, raised about $167 million after its offering of 11.1 million American Depository Shares were priced at well above the expected range.
Chinese online classifieds company 58.com Inc's stock rose more than 45 percent in its debut on Thursday. The success of Qunar and 58.com bodes well for the IPO of Chinese e-commerce giant Alibaba Group Holding Ltd as it prepares to float its shares in an IPO expected next year that could raise about $15 billion.
"Most Chinese companies that have gone public this year have been tech or internet related companies and investors are willing to pay a little extra for these type of companies regardless of where they are based," said Jay Ritter, a finance professor at the University of Florida. Analysts say another reason that Chinese companies are making a comeback is that the offerings are being underwritten by big names such as Goldman Sachs and Morgan Stanley. Among other Chinese companies hitting the US market this year, shares of microlender China Commercial Credit are up 53 percent since listing in August while semiconductor solution provider Montage Technology Group is up 41 percent since September.
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