Chinese Company To US Investors: Morons
What happens when a Chinese company decides to make an IPO in the US, mostly so they can move to a nicer building and pay themselves fat dividends? It almost doubles, of course.
More about this IPO from today’s Wall Street Journal:
Based in Xiamen, China, Longtop is a software developer and technology-services provider that focuses on financial institutions in that country, including three of the four largest state-controlled banks: China Construction Bank, Agricultural Bank of China, and Bank of China.
Derek Palaschuk, the company’s chief financial officer, said, “The banking infrastructure and business processes are so different in China that a lot of solutions from U.S. companies just don’t work.”
The company plans to use its IPO proceeds in part to purchase an office building in Xiamen and to pay dividends to its former private owners; the company doesn’t intend to pay dividends to new shareholders who purchase stock in the IPO. Goldman Sachs Group Inc. was the global coordinator for the IPO.
