Duoyuan Printing Shares Fall In IPO Debut

NEW YORK (AP) — Shares of Chinese printing equipment supplier Duoyuan Printing Inc. fell Friday after its initial public offering raised $63 million, pricing at the bottom of its expected range.

In a filing with the Securities and Exchange Commission earlier in the week, Duoyuan said it had expected to sell 6.5 million shares for $8.50 to $10.50 each.

The Beijing-based company raised net proceeds of $42.3 million, and intends to spend it building a factory, upgrading existing manufacturing facilities and for general corporate purposes. Existing stockholders sold 955,918 common shares, which didn't directly benefit Duoyuan.

Duoyuan shares dropped 35 cents, or 4 percent, to $8.16 in midday trading. The broader Standard & Poor's 500 index edged down 2 points to 1,066.61.

Duoyuan says its distribution network, spread over more than 65 cities, is one of the largest within China's printing equipment industry. The Chinese printing industry grew at a compound annual rate of 17 percent a year from 2002 to 2007, according to a trade group.

Piper Jaffray underwrote the offering and is entitled to purchase an additional 968,388 shares.