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IPO Outlook: 
Chinese Medical Company Gains 31% at Start
Author: Yordanka Bahchevanska
123jump.com
Last Update: 5:49 PM EDT October 02 2006


As the initial public offering market begins to pick up strenght, energy companies are suddenly getting a cold welcome from investors. Shares of oil company EV Energy Partnes was the only one to end lower from its IPO price among all the new deals for this week in the market.

 
143 initial public offerings have been priced so far this year as of Sept 29, 2006:

Seven IPOs were priced during the week of September 25th, 2006. There are five deals on deck for the next week planning to raise nearly $600 million.

IPO PERFORMANCE

ADVANCERS:

Shares of Mindray Medical International Ltd. (MR: chart), a Chinese medical device company, rose as much as 31% on their first day of trading Tuesday, a day after its initial public offering was priced above forecast of $10 to $12 a share.

The company priced its initial public offering of 20 million American depositary shares at a price of $13.50 per share on Monday. Each American depositary share represents one Class A ordinary share of Mindray.

The offering consists of 10.6 million shares offered by Mindray and 9.4 million shares offered by the selling shareholders.

Mindray follows China-based foreign language instruction company New Oriental Education & Technology Group Inc. (EDU: chart) which soared in the post-Labor Day IPO market after a weak summer for IPOs. New Oriental Education shares rose as much as 54% at start, bolstered by high expectations about the Chinese market.

The underwriters have an option to buy up to 2.0 million additional ADSs from Mindray and up to 1.0 million additional ADSs from the selling shareholders.

Goldman Sachs and UBS AG were the underwriters of the offering.

Mindray Medical International Limited is a leading developer, manufacturer and marketer of medical devices in China with a significant and growing presence outside of China.

The shares ended the week at $16.69, up 23.6% from the offering price.

Shares of cosmetics maker Bare Escentuals Inc. (BARE: chart) rose 32% on Friday, a day after pricing at $22 a share, high above a $15 to $17 forecast range. The deal was worth $352 million.

The 16 million share offering represents an 18% stake in the company.

Shares of cosmetics makers Estee Lauder Cos. Inc. (EL: chart) and Avon Products Inc. (AVP: chart) both traded lower Friday.

The underwriters, led by Goldman Sachs and CIBC World Markets, have the option to buy 2.4 million additional shares to cover over-allotments.

The San Francisco-based company develops, markets and sells cosmetics and skin care products.

The shares ended the week at $27.15, up 23.4% from the offering price.

Shares of Internet photo service Shutterfly Inc. (SFLY: chart) rose 11.5% on their first day of trading Thursday. The 5.8 million share offering raised $87 million, pricing at $15, the high end of a $13 to $15 forecast range.

All of the shares were offered by the company.
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