NEW YORK, Sept. 22 (Xinhua) -- Chinese luxury e-commerce company Secoo Holding Limited on Friday rang the Nasdaq Stock Market opening bell in celebration of its Initial Public Offerings (IPO).
Secoo's IPO of 8,500,000 American depositary shares (ADSs) priced at 13 U.S. dollars per ADS, within the pricing range of 11.5 dollars to 13.5 dollars given by the company, for a total offering size of approximately 110.5 million dollars, assuming the underwriters do not exercise their option to purchase additional ADSs. Each two ADSs represent one Class A ordinary share.
The company has granted the underwriters an option, exercisable within 30 days from the date of the final prospectus, to purchase up to an aggregate of 1,275,000 additional ADSs to cover over-allotments.
Shares of Secoo, trading under the ticker symbol of "SECO," tumbled about 19 percent to 10.52 dollars per ADS around midday Friday.
Secoo is Asia's largest online integrated upscale products and services platform as measured by gross merchandise volume in 2016, according to the Frost & Sullivan report.
The company's net revenues increased to 198.6 million dollars for the six months ended June 30 from the same period a year ago, with a net profit of 7.7 million dollars. It had net losses of 32.9 million dollars and 6.6 million dollars in 2015 and 2016, respectively.
"China's consumption expenditure continues to grow rapidly, with luxury spending on the upswing, which will give us tremendous development opportunities," Secoo Founder & CEO Richard Rixue Li told Xinhua.
By 2021, China will add 1.8 trillion dollars in new consumption, according to a report by The Boston Consulting Group and AliResearch, the research arm of Chinese e-commerce giant Alibaba.
Meanwhile, online platforms are one of the fastest growing retail channels in China. The stocks of Alibaba and JD, China's two largest e-commerce firms, have been trading around their record highs in recent days, despite the stagnant global consumer market.
"By listing on the Nasdaq Stock Market, Secoo will have a better international stage, which will enable us to link global brands and the Chinese consumer market more closely," Li said.