Rediff.com India Ltd. (Nasdaq: REDF) American depositary shares soared 7 5/16 to 19 5/16 Wednesday, their first day of trading.
Rediff, based in Mumbai, India, is an Internet portal providing information and e-commerce services to the Indian community worldwide. The company is one of the few e-commerce IPOs to see strong demand in recent months.
“There were a number of features that contributed to the deal’s success,” said David Menlow, president of IPOFinancial.com. Lead underwriter Goldman, Sachs & Co. has a history of successful IPOs, investors perceive Indian companies as solid investments, and the IPO market overall has shown “decidedly reduced risk” over the last week, said Menlow.
The issue was also one of the few that did not have its price lowered ahead of the sale. The demand for Rediff, according to Menlow, was a combination of “everything coming together” for the deal and “having an arid landscape of offerings to choose from.”