Formal roadshows will start this Monday September 26 for a $110 million to $150 million Hong Kong IPO by China Paradise Electronics, also know as China Yongle. Timing of the potential Red chip issue is not ideal given the underperformance of its main comparable, GOME Electronic Appliances, China's largest electronics retailer.
The Hong Kong listed stock has dropped 35% since the end of June following the announcement of weaker than expected first half results, which showed a slim 4% rise in net income. Year-to-date it is down 31.56%.
Yet GOME's weak performance has been counterbalanced by the strong performance of China's second largest electronics retailer, Suning...
