China IPOs in Vogue

Venture capitalists cashed in on Chinese investments last week with two debuts on U.S. exchanges that met with a mixed reception.

ChinaEdu, an online education provider, and VanceInfo Technologies, an IT outsourcer, raised $68 million and $65 million, respectively, in their IPOs. Neither managed to price at the high end of expectations.

Shares of Beijing-based ChinaEdu tumbled close to 20% in first day trading Tuesday, a rough day for the broader markets, but made up for much of the loss later in the week. The company priced its 6.8 million share offering at $10 per share, which was at the low end of its anticipated range.

Still, it looks to be a decent liquidity event for venture backers. The PE-backed company raised $28 million in funding between 2004 and 2007. Private equity investor Tiger Global is the largest private equity backer, owning 10.1 million shares, or 20% of the company, before the offering. Other investors include McGraw-Hill, Level Global Investors, Right Union Investment and IDG Technology Venture Investments.

VanceInfo Technologies had a better first day on the public markets. The company priced its 7.65 million share offering Wednesday at $8.50 per share, the middle of its proposed range. Shares soared 15% in first-day trading to close just under $10.

Previously the Beijing-based company had raised $32 million from private backers. Venture investors, including Sequoia Capital, DCM, Inno Global Technology, Button Software and Harper Capital collectively owned more than 80% of shares in the company before the offering.