Shares in the Chinese wealth management firm Noah Holdings rose as high as 33 per cent in its 9 November initial public offering driven by strong interest from US investors, media reports said.
Opening at $9 to $11 each, the shares generally sold at $12 apiece, rising to as high as $15.99 on the New York Stock Exchange. The company had put out 8.4 million American depositary shares, raising $101 million. Proceeds from the IPO are reportedly intended to set up new offices, hire more staff and update its infrastructure. New funds of funds products are also on the way.
Shanghai-based Noah was established in 2005 to cater to China's high net worth individuals. It has since expanded to a network of 300 advisors across 28 cities and now services over 12,000 clients. The company recorded $13.7 million in net revenue for the half-year to 30 June 2010, which is higher by over 135 per cent from the year-earlier period.
HNW individuals account for about 79 per cent of Noah's total earnings.