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Wanda Sports Has Year’s Second-Worst Debut After IPO Flops

Crystal Tse
(Bloomberg) -- Wanda Sports Group Co. continued its downward slide after raising only $190 million in its U.S. initial public offering, less than half its earlier goal for the listing.The shares opened at $6 and fell as much as 30% below the $8 a share offer price disclosed just hours before the company’s trading debut. The shares were down 27% to $5.82 at 2 p.m. in New York trading.The owner of the Ironman triathlon brand sold 23.8 million American depository shares after slashing the marketed price range as well as the size of the offering, according to a filing confirming an earlier report by Bloomberg.The unit of Chinese billionaire Wang Jianlin’s conglomerate Dalian Wanda Group Co. and some of its investors originally sought to sell 33.33 million shares for $12 to $15 each. The Beijing-based company first lowered that target to 28 million shares for $9 to $11 each. With the IPO undersubscribed, the existing shareholders abandoned their original plan to sell 13.3 million of their shares.The company, which has had partnerships with FIFA and the Chinese Basketball Association, owns sports properties and generates revenue from events, sponsorship and media pacts.The offering was led by Morgan Stanley, Deutsche Bank AG and Citigroup Inc. The shares are expected to begin trading Friday on the Nasdaq Global Market under the symbol WSG.\--With assistance from Yueqi Yang.To contact the reporter on this story: Crystal Tse in Hong Kong at ctse44@bloomberg.netTo contact the editors responsible for this story: Fion Li at fli59@bloomberg.net, Michael Hytha, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

(Bloomberg) -- Wanda Sports Group Co. fell 36% in its trading debut after its U.S. initial public offering raised only $190 million, less than half its earlier goal for the listing.

The American depositary shares priced in the IPO at $8 and then opened at $6. The shares ended the day worth only $5.16 a share, valuing the Beijing-based company at $705 million after the second-worst debut on a U.S. exchange this year.

The outcome was a far cry from earlier aspirations by the unit of Chinese billionaire Wang Jianlin’s conglomerate Dalian Wanda Group Co. to raise as much as $500 million. Wanda Sports and some of its investors originally sought to sell 33.33 million shares for $12 to $15 each.

Faced with insufficient demand, the owner of the Ironman triathlon brand had slashed the size and price range before the offering. The targets were lowered to 28 million shares for $9 to $11 each. The offering ended up at 23.8 million shares after existing shareholders abandoned plans to sell 13.3 million of their shares.

The debut crash adds to the poor performance of Chinese companies that have gone public this year in the U.S. Including Wanda Sports, 11 of the 18 are trading below their IPO price, according to data compiled by Bloomberg.

Ruhnn Holding Ltd., a Chinese company that promotes e-commerce through online influencers, fell 37% drop on its first day and ranks as the year’s worst IPO in the U.S. Ruhnn has fallen 70% since its $125 million IPO in April, also making it the worst performer of the 114 listings on U.S. exchanges this year, the data show.

DouYu, Luckin

On average, listings for China-based companies are up 2.5% from their offer price, compared with 31% for all U.S. listings.

DouYu International Holdings Ltd., whose $775 IPO is the largest by a China-based company this year, is down more than 12%. Luckin Coffee Inc., the second-biggest of the group with a $645 million listing, is up 47%.

Wanda Sports, which has had partnerships with FIFA and the Chinese Basketball Association, owns sports properties and generates revenue from events, sponsorship and media pacts.

Its offering was led by Morgan Stanley, Deutsche Bank AG and Citigroup Inc. The shares are trading on the Nasdaq Global Market under the symbol WSG.

(Updates with closing share price in first paragraph)

--With assistance from Yueqi Yang.

To contact the reporter on this story: Crystal Tse in Hong Kong at ctse44@bloomberg.net

To contact the editors responsible for this story: Fion Li at fli59@bloomberg.net, Michael Hytha, Josh Friedman

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.