UPDATE 2-Chinese auto, tech firms have lackluster debuts
Lentuo closes up 4.8 pct after downsized IPO
* Sky-mobi closes 25 pct below IPO price
* Lentuo, Sky-mobi follow two blockbuster Chinese IPOs (Adds analyst comment, updates with closing prices)
NEW YORK, Dec 10 (Reuters) - A Chinese auto sales company traded up slightly and a Chinese tech company fell in its U.S. stock market debut on Friday, a sign that not every Chinese company will get a blank check in its initial public offering.
Shares of auto retailer Lentuo International Inc closed at $8.38, 4.8 percent above their $8 IPO price. Shares of Sky-mobi Ltd , which sells software applications for mobile phones and runs the Maopao app store, closed 25 percent below their $8 IPO price at $6.
The lackluster debuts follow the blockbuster IPOs of Youku.com Inc and E-Commerce China Dangdang Inc earlier this week. Shares of both companies, referred to respectively as the YouTube and Amazon.com of China, rose dramatically in their debuts and on Friday closed 193 percent and 104.9 percent above their IPO prices, respectively.
Part of the struggle for Lentuo and Sky-mobi could be their middle-man status, said Nick Einhorn, an analyst at Connecticut-based IPO investment firm Renaissance Capital.
"They depend on larger companies like China Mobile or the auto manufacturers so they are not really in control of their own destiny the way a company that makes and sells its own products is," said Einhorn.
Einhorn added that both companies are in sectors where there are multiple players drawing from the same revenue stream.
Sky-mobi must coordinate with wireless providers and handset makers while Lentuo relies on manufacturers for dealership franchises
* Sky-mobi closes 25 pct below IPO price
* Lentuo, Sky-mobi follow two blockbuster Chinese IPOs (Adds analyst comment, updates with closing prices)
NEW YORK, Dec 10 (Reuters) - A Chinese auto sales company traded up slightly and a Chinese tech company fell in its U.S. stock market debut on Friday, a sign that not every Chinese company will get a blank check in its initial public offering.
Shares of auto retailer Lentuo International Inc closed at $8.38, 4.8 percent above their $8 IPO price. Shares of Sky-mobi Ltd , which sells software applications for mobile phones and runs the Maopao app store, closed 25 percent below their $8 IPO price at $6.
The lackluster debuts follow the blockbuster IPOs of Youku.com Inc and E-Commerce China Dangdang Inc earlier this week. Shares of both companies, referred to respectively as the YouTube and Amazon.com of China, rose dramatically in their debuts and on Friday closed 193 percent and 104.9 percent above their IPO prices, respectively.
Part of the struggle for Lentuo and Sky-mobi could be their middle-man status, said Nick Einhorn, an analyst at Connecticut-based IPO investment firm Renaissance Capital.
"They depend on larger companies like China Mobile or the auto manufacturers so they are not really in control of their own destiny the way a company that makes and sells its own products is," said Einhorn.
Einhorn added that both companies are in sectors where there are multiple players drawing from the same revenue stream.
Sky-mobi must coordinate with wireless providers and handset makers while Lentuo relies on manufacturers for dealership franchises
