Casino's Cnova rises above lowered IPO price in U.S. debut
By Dominique Vidalon
PARIS/NEW YORK (Reuters) - Shares in Cnova rose 9 percent on their first day of trading on the New York stock exchange on Thursday after tough market conditions forced French parent Casino (CASP.PA: Cotización) to price the its e-commerce business well below the initial indicative range.
Cnova CNV.O competes with global online retailer Amazon.com (AMZN.O: Cotización) and sells consumer electronics, computers and home appliances.
Shares opened at $7.63 on New York-based Nasdaq, above its offer price of $7 per share. Retailer Casino priced the initial public offering well below the $12.50-$14.0 target range.
Cnova's debut follows a surge in e-commerce initial public offerings activity this year, culminating in the bumper New York flotation of China's Alibaba (BABA.N: Cotización) in September.
However, major global online retailers have not done well in recent months, with Amazon's sales forecast for the crucial holiday quarter disappointing Wall street.
A lacklustre stock market debut by Europe's largest online fashion retailer Zalando (ZALG.DE: Cotización) in Frankfurt and a deteriorating economic climate in France and Brazil where Cnova makes most of its business also dampened investors' appetite.
A BLOW FOR CASINO Continuación...