China Zenix begins trading below IPO price

AP News
Posted: May 12, 2011 10:09 AM

Shares of China Zenix Auto International Ltd. are trading in the U.S. on Thursday below an initial public offering price of $6.

Stock in the largest commercial vehicle wheel maker in China dropped to $5.80 early in the day after hitting $6.20 as the market opened. The broader markets also edged lower.

The company and an investor offered 12.9 million shares in the U.S. for $6 each. That was far below an initial price range of $9.50 to $11.50 per share that the company expected in April.

China Zenix expected the deal to bring in $77.4 million. But it said the size could grow if underwriters exercise options to sell more shares.

The shares are selling under the stock symbol "ZX."