NEW YORK (Reuters) – Shares of Beijing-based Camelot Information Systems Inc (CIS.N) closed 3.2 percent below their initial public offering price in their stock market debut on Wednesday after pricing above demand.
The shares closed at $10.65 on the New York Stock Exchange, below their $11 IPO price. The Dow Jones industrial average closed down 1.07 percent and the S&P 500 closed down 1.28 percent.
Camelot sells business software and IT services in China, Taiwan and Japan.
The IT services industry in Asia-Pacific is growing rapidly. China’s IT services industry, alone, is expected to grow to $18.2 billion in 2013 from $10.7 billion in 2009, according to Camelot’s prospectus, citing figures from research house IDC.
Camelot, whose customers include International Business Machines Corp (IBM.N), Accenture Plc (ACN.N) and Hewlett-Packard Co (HPQ.N), has posted sequential increases in net revenue and income over the past three years.
In the three months ended March 31, net revenue grew 72.1 percent from a year earlier to $35.31 million. Net income due to the company grew 62.2 percent to $1.03 million in the same period.
Camelot had total assets of $272.60 million in the quarter ended in March, and total liabilities of $65.29 million.
The company’s husband-and-wife founders, Chief Executive Officer Yiming Ma and Chief Operating Officer Heidi Chou own a combined 31.1 percent stake. They did not sell shares, according to a regulatory filing.
Citigroup Venture Capital International, the largest single shareholder, sold 16.08 million of its 44.06 million shares, according to the filing.
Camelot sold 13.33 million American depositary shares at $11 each in its Tuesday IPO, raising $146.7 million. It had planned to sell shares at $11 to $13.
It said it would use proceeds from the IPO for working capital and general corporate purposes as well as for possible acquisitions.
Underwriters on the IPO were led by Goldman Sachs Asia and Barclays Capital. The shares are trading on the New York Stock Exchange under the symbol “CIS.”
(Reporting by Clare Baldwin; editing by John Wallace, Carol Bishopric and Gunna Dickson)