Southern Metropolitan News, 7/22/11
Chinese online P2P video service provider, download accelerator software developer, and online game operator Xunlei has postponed its Nasdaq IPO for an indefinite period of time. A spokesperson for Xunlei said the decision was due to current US stock market conditions as well as uncertainty regarding Chinese firms after a series of accounting scandals.
Xunlei had originally planned to list on July 20 and then delayed listing for one day. Xunlei previously lowered its expected IPO share price from USD 14-16 to USD 12-14, and the number of shares to be issued from 7.6 mln to 6 mln, meaning the company would raise a total of USD 78 mln at an average share price of USD 13.
Xunlei's spokesperson said that the postponement is unlikely to have any major effect on the company.
Editor's Note: For more information on this topic, please see "Rumor: Xunlei to IPO on July 20," MD 7/09/11 issue.