Chinese advertising company Redgate Media Group cut its asking price for shares in its initial public offering by 39 percent late Monday and delayed its IPO by a day.
The company, which conducts television, radio, billboards and Internet marketing campaigns in about 160 Chinese cities, now hopes to sell 5.5 million American Depositary shares for between $6 to $8, raising about $38.5 million, if the shares price at the middle of that range.
Redgate's accounting firm had said that without raising money in an IPO or securing some other form of financing, Redgate may find itself unable to pay off recent acquisitions, the company said in a regulatory filing.
Redgate said Monday that it now expects net proceeds of about $29.5 million from the IPO, rather than its prior estimate of about $33.8 million.
It had earlier hoped to sell 3.75 million shares for $10.50 to $12.50, raising about $43 million.
In the nine months ended Sept. 30, 2009, the company lost $84,000 on sales of $19.1 million.
IPO research firm Renaissance Capital expects the company to price shares Tuesday night. They had been expected to price Monday night.
Shares would trade under the symbol "RGM" on the Nasdaq Global Market.
Brean Murray Carret and I-Bankers Securities are the lead underwriters.
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