U.S. investors on Tuesday had not yet settled on a starting price for shares of China Mobile Games and Entertainment Group (CMGE), which on Tuesday became the first Chinese company to list on the Nasdaq in 2012.
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The company says it’s the top mobile gaming company in China by revenue, with 18.7% of that market’s mobile games revenue in 2011. That’s up from 18.3% in 2011, Hendrick Sin, the company’s vice chairman, told IBD via phone from New York, where executives were visiting the Nasdaq.
China Mobile Games listed under the ticker CMGE Tuesday. Its executives rang the closing Nasdaq bell on Monday.
The company didn’t issue any new stock for the U.S. market. It also didn’t go through the typical IPO process, or the investment banking roadshow that goes along with that process, so it’s up to the market to determine a fair price for shares before they can start trading, says Sin.
As of Tuesday’s close, investors had put in a high bid price of 3.90 per share, not close to the ask price of 40.
“The market is trying to find the right valuation,” Sin said.
Hong Kong-listed VODone freed up 6.1% of its shares to serve as U.S. shares for China Mobile Games, says Sin. VODone will retain 57% ownership of China Mobile Games.
China Mobile Games has 450 mobile games, of which 314 are played on smartphones, including mobile device that run on Apple ’s (AAPL) iOS and Google’s (GOOG) Android.
As of Jan. 1, China Mobile Games said it had 397 games and 9.6 million paying users on smartphones, in addition to 29.1 million paying “feature phone” users who play games that come pre-loaded on nonsmartphone cellphones, according to its U.S. regulatory filings.
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