The Shanghai-based online apparel retailer priced an offering of 11.7 million shares at $11 each, and saw the stock rocket almost 60% to close at $17.26.
Mecox's surge follows the market's warm reception of Country Style Cooking Restaurant (CCSC), the Chinese fast food chain that began trading at $24 in September and currently changes hands at roughly $34 a share for a gain for 38%.
Another example is China New Borun (BORN), which sells alcoholic beverages. The company went public in June at $7 per share and the stock now trades at around $16, a whopping 140% gain.Then there's the rare earth mineral company Molycorp (MCP), that has soared to $35 from its original price of $12. But with every IPO success story, Chinese or no, there seems to an equally dismal offering. One such name is NuPathe (PATH), a pharmaceutical company that launched in August at $10 a share and has sunk to $6. Trius Therapeutics (TSRX) hasn't fared much better as it dropped from an initial $5 a share to $4 for a 20% decline. But it's not just small drug companies that have fallen flat. SMART Technologies (SMT) went public at $17 and has tumbled to $13.50, also a 20% loss. So investors need to do a little homework if they want to informed decisions about these IPOs. Here are this week's offerings and their chances of success.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV