Taomee Holdings shares trade below opening price

AP News
Posted: Jun 09, 2011 11:41 AM
Taomee Holdings shares trade below opening price

Shares of Taomee Holdings Ltd. are falling in their U.S. debut even after being priced at the low end of expectations.

Taomee Holdings, a Chinese children's online entertainment company, priced its initial public offering of about 7.2 million American Depositary Shares at $9 per ADS. The shares had been expected to price at between $9 and $11 a share.

But in midday trading Thursday, its shares fell to $8.50, down 50 cents, or 5.6 percent, from the offered price after sinking as low as $7.24 earlier in the session.

The shares are being traded under the symbol "TAOM" on the New York Stock Exchange.

Each ADS represents 20 ordinary shares of the company. Underwriters have been granted an option to buy up to about 1.1 million additional ADS to cover overallotments.