China Electric Motor Inc. said Friday it raised $22.5 million after pricing shares at the bottom of its expected range — $2.50 per share less than it had originally hoped to ask.
The Chinese maker of parts for household appliances, autos and consumer devices said it sold 5 million shares for $4.50 apiece. According to a regulatory filing in December, it had hoped to fetch $6 to $7 a share. The asking price was cut twice during a weak two months for the initial public offering market.
On Wednesday night, China Electric Motor also replaced one of its underwriters, Rodman & Renshaw, with Roth Capital Partners. It kept Westpark Capital on board.
There were 7 IPOs expected to debut this week. At least two postponed their debuts, two are trading below their sale prices and two cut the size of their offerings.
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