HONG KONG (Reuters) -Shares in Cloud Village Inc, the music streaming business owned by NetEase Inc’s, fell 1% on their first day of trade.
The stock’s performance is being closely watched as a barometer of investor appetite for Chinese tech related deals amid a regulatory clampdown on the sector by mainland authorities that has upended business norms.
Cloud Village raised $421 million in its initial public offering, with its shares priced at HK$205 each in one of Hong Kong’s first major tech listings since mid-year.
NetEase sold 16 million shares in the IPO but the final price set was set only at the mid point of the range, indicating the deal was not swamped by demand.
The IPO was Cloud Village’s second second attempt to list this year. The company shelved its initial plan to raise $1 billion in August after Chinese regulators toughened rules affecting the tech sector. Cloud Village then scaled down the size of the deal to win investor support.
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