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Worst IPOs of 2009: Biggest Stock Flops

Chemspec International

Another Chinese company, Chemspec International (CPC), ranks as the second-least successful deal by stock returns in 2009.

The country's largest producer of fluorinated specialty chemicals -- used in the manufacture of thin film transistor liquid crystal displays, and other electronics products -- Chemspec priced its IPO of 8 million American Depository Shares at $9 each. Each ADS represents 60 ordinary shares of the company.

Since it began trading on June 24, the stock has tumbled 33.8% and closed on Dec. 8 at $5.96.

"Growing competition, soft end markets, material accounting weakness and obnoxious related-party transactions are just a few of the reasons we'd cite in urging prospective investors to steer clear of this offering," Morningstar wrote in a note prior to the offering.

In 2008 Chemspec reported sales of $138 million.

While the company has some lofty goals -- such as doubling its total nameplate capacity -- many experts think management is being too ambitious.

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