The price recovered from a disaster in the first hour to end the day in a solid position
The initial public offering for SEA Group, formerly known as Garena, stumbled out of the gate before recovering and finishing the day in a position the company should find acceptable.
When the stock listed at around 11 am it was trading at nearly US$17 a share (higher than the sale price of US$15 a share).
Within about 45 minutes the stock fell off a cliff and dropped almost 18 per cent to US$14. The rest of the day was spent recovering and by the end of trading, SEA Group’s stock closed at just over US$16.
SEA Group saw a trading volume of 18.6 million shares, which made it the sixth most traded stock on the NYSE yesterday, according to Yahoo Finance.
In its public offering, SEA sold almost 59 million shares at US$15, or about 10 million more shares than it initially planned. The US$15 was above its original target of US$12 to US$14 and the company ended up raising US$884 million.
The underwriters have 30 days to decide if they want to purchase an additional 8.8 million shares that would put the total amount raised over US$1 billion.
The company’s ticker symbol is SE.
SEA is the twelfth Asian company to list in the US this year and are on pace to break the records for most listings in America from Asian companies.
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