UPDATE 2-Lighting company Orion Energy soars in debut
(Recasts with Orion Energy and Gushan's first-day performance; adds analyst comment, byline; updates share prices)
By Lilla Zuill
NEW YORK, Dec 19 (Reuters) - Orion Energy Systems Inc (OESX.O) soared in its market debut on Wednesday, signaling strong interest in energy efficient "green stocks," while a newly listed Chinese biodiesel producer rose only moderately, a sign that investors are cooling on new Chinese issues.
Orion, which sells efficient lighting systems to companies such as Coca-Cola Inc (KO.N) and Kraft (KFT.N), closed 65 percent higher than its $13 initial public offering price, at $21.41 on Nasdaq.
Coca-Cola alone bought enough Orion light fixtures to account for 20 percent of the company's revenue in the six-month period ended Sept. 30, helping to expand sales by 75 percent to $35 million. Net income for the period was $1.8 million, compared with $5,000 during the same period a year ago.
"With its patented products that enable electricity cost savings as well as a sharp reduction of carbon dioxide emissions, it (Orion) is a recipe for success," said Scott Sweet, managing director of IPOboutique.com.
Orion has installed its lighting systems in more than 2,100 companies, including Fortune 500 corporations.
On Tuesday, the Plymouth, Wisconsin-based company raised $100 million with a 7.7 million share offering that priced in the middle of expectations.
Underwriters led by Thomas Weisel Partners have the option to purchase an additional 1.2 million shares to cover overallotments.
COOLER RECEPTION
American Depositary shares of Chinese biodiesel producer Gushan Environmental Energy Ltd (GU.N) on Wednesday eked out a modest 1 percent gain, closing at $9.73. That is 13 cents higher than the company's $9.60 IPO price but still below its $11.50 to $13.50 forecast range.
On Tuesday the company, based in the China's Fujian province and which claims to be the largest biodiesel producer in China based on third-party research, raised about $173 million with the sale of 18 million ADS.
Through September and October Chinese offerings on U.S. stock exchanges routinely posted double-digit gains in their debuts as investors were spurred on by impressive growth rates and hopes of tapping into the growing spending power of China's expanding middle class.
More recently Chinese IPOs, such as Agria Corp (GRO.N), have priced below range, or fallen in first-day trading.
While a smattering have done well in their market debuts -- VanceInfo Technologies Inc (VIT.N) and Xinyuan Real Estate (XIN.N) jumped 17 and 20 percent, respectively, a week ago -- the stocks have quickly given up gains. VanceInfo is now about 9 percent above its $8.50 IPO price, while Xinyuan has fallen 9 percent below its $14 offering price.
In total, Chinese offerings in the United States this year have raised $6.5 billion, up from about $1 billion in 2006, according to data tracker Dealogic.
Gushan Environmental is the last Chinese offering on the 2007 U.S. IPO calendar.
Underwriters led by Merrill Lynch MER.N have the option to purchase an additional 2.7 million ADS to cover overallotments. (Editing by Mark Porter, Richard Chang)
