Ambow down while Gordmans up in stock debut

NEW YORK (Reuters) - The shares of Ambow Education Holding Ltd (AMBO.N), which offers educational, tutoring and career preparation services in China, and discount retailer Gordmans Stores Inc (GMAN.O) moved in opposite directions during their first day of public trading on Thursday.

Both companies' shares opened flat at their IPO prices, but Ambow closed down 7.5 percent and Gordmans ended up 0.3 percent.

Analysts said despite the price fluctuations, the reception overall by investors was a bit on the subdued side.

"The IPO market is inherently speculative. Right now people are finding better bargains in the open market and feel more comfortable with established track records and coverage from multiple analysts," said IPO Boutique Senior Managing Partner Scott Sweet.

Ambow shares opened at their $10 IPO price, but closed down 75 cents at $9.25 on the New York Stock Exchange on Thursday.

The company sold 10,677,207 American Depositary Shares for $10 each on Wednesday, raising about $107 million. It had planned to sell the shares at $10 to $12 each.

The shares of Gordmans, which raised about $58.9 million in its IPO, opened at their $11 IPO price and then rose as high as $11.99 before closing at $11.03 -- up 3 cents on the Nasdaq.

Omaha, Nebraska-based Gordmans sells clothing and household goods for as much as 60 percent off and had 68 stores as of June 4. Net sales rose 19.7 percent to $111.9 million in the 13 weeks ended May 1 compared with a year earlier. Net income rose 75.5 percent to $6.4 million in the same period.

Ambow established regional hubs in 2008 by buying K-12 schools, tutoring centers, colleges and career centers. It is trying to take advantage of higher disposable income and the hiring needs of companies doing business in China.

As of March 31, Ambow had five K-12 schools, 96 tutoring centers, two colleges and 16 career enhancement centers, and sold its products and services in 30 of the 31 provinces and autonomous regions in China.

The company's net revenue grew 47.6 percent to 260.3 million yuan ($38.4 million) in the three months ended March 31. Net income fell 81.8 percent to just under 3 million yuan in the same period.

The net loss attributable to ordinary shareholders more than doubled to 96.1 million yuan during the period.

Ambow plans to use the IPO proceeds for strategic acquisitions and upgrades and expansion of its schools and learning centers.

JPMorgan and Goldman Sachs led the underwriters on the Ambow IPO. The shares trade on the New York Stock Exchange under the symbol "AMBO."

Underwriters on the Gordmans IPO were led by Piper Jaffray and Wells Fargo Securities. The shares are trading on the Nasdaq under the symbol "GMAN."

(Reporting by Clare Baldwin; editing by John Wallace, Matthew Lewis and Andre Grenon)