Vipshop to Float New ADS Issue
Vipshop and "certain selling shareholders" are to float a new offering of American depositary shares. The China-based discount retailer and its associates will issue 7.2 million ADSes. Four million of these will be proffered by the company, and the remainder will come from those shareholders, which it did not name. Each ADS will represent two ordinary shares of the firm, and they will be offered at $24 apiece.
Additionally, the company's underwriters are to be granted a 30-day purchase option for up to an additional 1.08 million ADSes.
Vipshop estimates the gross proceeds of its ADSes will total roughly $96 million (the company will receive no monies from the selling shareholders). The firm did not say how it would utilize the funds from the offering.
The three joint book-runners on the issue are units of Goldman Sachs, Deutsche Bank, and JPMorgan Chase.
The article Vipshop to Float New ADS Issue originally appeared on Fool.com.Fool contributor Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs. The Motley Fool owns shares of JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.