Dangdang loses 2.7 bln yuan in market value
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Chinese online book retailer Dangdang.com was listed on the New York Stock Exchange on December 8, 2010. |
In just two days, Dangdang.com, China's largest online book retailer, saw 2.7 billion yuan of its market value vanish into thin air, Xinhuanet reported.
Shares of Dangdang slumped 8.3 percent on January 18, the first trading day after the mandated "quiet period" was over. Dangdang's share price continued to drop on Thursday, down 7.34 percent.
Dangdang went public on the New York Stock Exchange on December 8, 2010, with Morgan Stanley and Credit Suisse Group AG as the lead underwriters of the initial public offering (IPO). Dangdang's shares closed at $29.91 on its first trading day, surging 86.94 percent from its IPO price of $16.
Last Saturday, Dangdang's co-founder and CEO Li Guoqing aggressively vented on his microblog, claiming that Morgan Stanley had undervalued the IPO. Soon after Li's post, two individuals who purported to be Morgan Stanley employees responded with personal attacks on the microblog. An angry exchange of insults and profanity went on for two days. Li even crafted profanity-laced song lyrics. On Jan. 17, Li apologized on the microblog to Dangdang's board of directors for his behavior. Dangdang also issued a statement on its official website, saying the lyrics shouldn't be taken seriously and said Li was wrong to use profanity.
China's business press carried the story above on Friday. China.org.cn has not checked the stories and does not vouch for their accuracy.
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