Ambow Moves to NYSE American; Ends Day Down 5%
The shares of Ambow, which has been trying to exit the pink sheets, closed at $4.03 per ADS, down 5 percent Friday in its first day trading on the NYSE American.
Ambow Education Holding Ltd. (NYSE American: AMBO) began trading on the New York American Stock Exchange today, closing 5 percent below its initial public offering price of $4.25 per American depositary share.
After opening at $5.13 per ADS, Ambow saw a drop to $4 in early trading, before ending the day at $4.03 per ADS. The company sold 1.8 million shares, raising $7.65 million.
The company, an education provider based in Beijing, has been trying to exit the pink sheets for the past eight months after it was forced into insolvency five years ago on allegations of financial improprieties. In its original prospectus dated August 28, the company said it intended to use the proceeds from this offering for general corporate purposes.
The Benchmark Company LLC, the sole book-runner for the offering, has the right to purchase an additional 270,000 shares to cover over-allotments.
Ambow reported its revenue has risen consistently for the past three years, increasing 8 percent last year to $68.2 million. It reported net income last year of $7.1 million in contrast to a loss of $5.7 million in 2016.
The shares of Ambow closed at $4.03 per share, down 5 percent Friday from its IPO price on the NYSE American.
(Source: Thomson Reuters Eikon)