Shares of Chinese printing equipment supplier Duoyuan Printing Inc. fell Friday after its initial public offering raised $63 million, pricing at the bottom of its expected range.
In a filing with the Securities and Exchange Commission earlier in the week, Duoyuan said it had expected to sell 6.5 million shares for $8.50 to $10.50 each.
The Beijing-based company raised net proceeds of $42.3 million, and intends to spend it building a factory, upgrading existing manufacturing facilities and for general corporate purposes. Existing stockholders sold 955,918 common shares, which didn't directly benefit Duoyuan.
Duoyuan shares dropped 35 cents, or 4 percent, to $8.16 in midday trading. The broader Standard & Poor's 500 index edged down 2 points to 1,066.61.
Duoyuan says its distribution network, spread over more than 65 cities, is one of the largest within China's printing equipment industry. The Chinese printing industry grew at a compound annual rate of 17 percent a year from 2002 to 2007, according to a trade group.
Piper Jaffray underwrote the offering and is entitled to purchase an additional 968,388 shares.
Duoyuan trades on the New York Stock Exchange under the symbol "DYP."
Investors' reception of IPOs has been mixed recently. Earlier this week, two well-known brands, Hyatt Hotels Corp. and Ancestry.com., both got off to a strong start. But apart from them, five of the last nine IPOs have closed below their offering price on the first day, while an energy company, a bank and a real estate investment trust have postponed or suspended deals in the past two weeks.
Another company that began trading Friday, solar products provider STR Holdings Inc., was up nearly 9 percent by midday after shares priced at $10, below their expected range of $11 to $13.