Chinese IPO Surges on Debut
E-Commerce China Dangdang, considered the Amazon of China, is the largest online book retailer/e-commerce platform in that country.
The IPO (initial public offering) priced on Tuesday night at 17 million shares at $16, well above the price talk of $13-$15. Shares are up over 60 percent in its trading debut today.
Between the retail spending push and Internet growth in China, the company has a "huge customer growth base," Peggy Yu Yu, founder of E-Commerce China Dandang, told CNBC's "The Strategy Session" on Wednesday.
"One of the benefits I got out of the road show [a presentation by an issuer of securities to potential buyers that is intended to create interest] is they were telling me a lot of things I didn't know before, "she said.
There is no shortage of competitors within the growing Chinese market, but Yu Yu doesn't see that as a barrier.
"Competition is always there, Yu Yu said, adding, "we can take shortcuts from competitors' mistakes."
With e-books here in the United States beginning to surge past printed book sales, Yu Yu said she looks forward to the electronic book business in China.
"If e-books can come to China, we'll sell more volumes per title. When people buy physical books, if they have certain space, they're going to buy five or ten books. But buying in electronic format, they tend to really load iPad or something with 50 books or 600 books," Yu Yu said.
"We'll be able to sell more books to more people, and they're readily available whenever they want to read it," she said.
Asked if she was disappointed that the selling shareholders did not price the IPO at a higher level, Yu Yu said, "I only do IPO once in my lifetime. So I will have no comparables to look at whether we'll be priced higher or lower—I really leave that in the hands of the bankers."