March 16, 2007 -- Tongjitang Chinese Medicines priced its IPO at $10, down from the original target of $15-$17. The IPO shows that the US market still has a desire to own Chinese companies. However, after the Shanghai surprise of February 27, when the Shanghai stock market lost 9% of its value in one day, US investors may not be willing to pay as high a price for that ownership. Tongitang specializes in pill, tablet, gel or powder formulations of traditional herbal medications that the Chinese have been using for as long as one thousand years. At $10 per ADS, Tongjitang has a market capitalization of $334 million, a valuation of 5.4 times revenues and an EPS multiple of 19.5. More details...
