'Fast Thunder' IPO, Xunlei, Looks Strong After Day One
Chinese internet stocks have acquired much fanfare over recent months as a steady stream of tech IPOs hits the market.
Xunlei Limited (NASDAQ: XNET), which literally means, “Fast Thunder,” opened for trading Tuesday. A strong opening sent the stock higher as demand continued for the entire trading session.
The 7.3 million American Depository Shares (ADSs) of the IPO priced at $12, above the $9 to $11 expected range. Buyers raced to Xunlei even after the stock opened 18 percent above its offering price at $14.21. Over the course of the day, shares steadily moved up another 7 percent to close the first day of trading at $15.10.
J.P. Morgan and Citigroup lead the underwriting effort as joint book-running managers.
Xunlei is one of the top 10 largest Chinese internet companies. Its flagship product is a download manager allowing users to accelerate downloads of various file types including video on-demand. The manager is a dynamic software suite that currently has a built-in browser and an email system.
Disclosure: The author holds no positions in the mentioned securities.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.