Tags: US | Redgate | Media | IPO | Cut

Redgate Media Cuts Expected Price for IPO

Tuesday, 16 Mar 2010 10:16 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

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.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

We Don't Need 16,000 EPA Regulators

Wednesday, 27 Aug 2014 14:56 PM

America does still need some bureaucrats to enforce existing environmental rules and watch for new pollution problems. B . . .

Military Zone in Ferguson Is Not the Answer

Wednesday, 20 Aug 2014 08:47 AM

Libertarians warned for years that government is force, that government always grows and that America's police have beco . . .

Don't Over-regulate the Use of Drones

Wednesday, 13 Aug 2014 11:08 AM

Drones, unmanned flying machines, will soon fill our skies. They conjure up fears, especially among some of my fellow li . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved