Money

MIE Holdings slashes price, shares offered in IPO

(Agencies)
Updated: 2010-05-07 14:55

NEW YORK — Chinese oil company MIE Holdings Corp, on Thursday, cut the number of shares and expected price of its initial public offering, potentially reducing its proceeds from the deal by 42 percent.

MIE is the third company this week to cut the expected price for its shares amid stock market turmoil.

Americold Realty Trust cut the price range for shares by one-third Wednesday night, while Snowplow maker Douglas Dynamics Inc. reduced the price for its IPO Tuesday.

MIE said in a regulatory filing Thursday it expects to price 12 million American depositary shares, each representing 2.5 ordinary shares, rather than the 18 million American depositary shares it had previously hoped to sell. It now hopes to price the ADSs for $7 to $8 each, 40 percent below the $11.50 to $13.50 it previously expected, based on the midpoint of the ranges.

The company is selling fewer shares because its stockholders, including the company's executives and a fund connected to private equity firm TPG Capital, are now keeping their entire stakes. They had planned to sell about 15 million shares.

MIE said it now expects net proceeds of $77.4 million, down 42 percent from previous expectations of $133.2 million.

The growing debt problems in Europe have weighed on US stock markets this week, making investors increasingly wary of riskier bets on newly public companies.