Key Takeaways:
PomDoctor priced its IPO shares at the bottom of their range, seeking a high P/S ratio of nearly 10 that values the company at $472 million
The company was racing to complete its listing before the rollout of new Nasdaq rules that will require all new foreign listings to raise at least $25 million
Just last month we wrote about a Chinese company that suddenly decided to supersize its Nasdaq IPO in response to a looming new rule designed to weed out small, and often suspicious, new listings by foreign firms. But another company, internet-based healthcare provider PomDoctor Ltd. (POM.US), ignored those pending changes, proceeding with a listing plan that didn't seem to comply with the new rules.
PomDoctor's latest IPO filings over the last two weeks didn't make any reference to the pending Nasdaq rule changes announced last month. Under those changes, any foreign company applying to list on the Nasdaq will need to raise at least $25 million. Furthermore, any company whose public float falls below $5 million in value will be subject to an accelerated process for suspending and delisting its shares.
The Nasdaq said at the time that it was submitting its proposal to the U.S. securities regulator for approval, and that the new rules would take immediate effect after getting such a nod. If such approval comes, which seems almost certain, then companies with IPOs in progress would have a 30-day grace period to complete their listings without being subject to the new rules.
Auto insurance aftermarket services provider QMSK Technology Co. Ltd. appeared to be taking no chances on seeing its IPO plan derailed by the new rules, and last month announced a major upsizing of its ...
