A Bloomberg report said that fraud allegations hurled against NQ Mobile did not affect other Chinese companies. The shares of Qunar Cayman Islands Ltd and 58.Com Inc rose after their initial public offerings. Travel booking service Qunar jumped up to 89% on November 1 after it sold American Depositary Receipts for USD 15 per share. It had initially targeted a price of up to USD 11.50 apiece. Meanwhile, China-based online marketplace 58.Com Inc, also registered a 47% increase in its share price. In its October 31 IPO, shares were priced at USD 17 each.
According to Bloomberg, both companies increased their target price ranges before the share sale, proof that investor confidence remained high despite the Muddy Waters' report on NQ Mobile. China-based NQ Mobile had plunged 44% after allegations that it had inflated its sales.
Auerbach Grayson & Co Director of Asian Equity Sales Erik Lam told Bloomberg by email that NQ was an isolated case and did not affect other China firms. He added, "Qunar's upward revision to its price range bodes quite well for a pipeline of new IPOs by Chinese tech companies."
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