The American depositary shares (ADS) of Satyam Computer Services today was listed at $11.16 on the New York Stock Exchange (NYSE) at a premium of 14.9 per cent to the offer price.
The fourth-largest provider of information technology services began trading after it raised $140.8 million by selling 14.5 million ADS priced at $9.71 each. One ADS is equivalent to two domestic shares.
At this price, the ADS was listed at par with the company's domestic scrip price. The stock had closed 1.5 per cent up at Rs 228.20 on the Bombay Stock Exchange.
Two hours after listing, the Satyam ADS (NYSE symbol: SAY) was traded at $11.22, a 15.55 per cent premium to the offer price. At time of going to the press, the volume of trade of the Satyam ADS was 10,56,700.
The company received bids for $818 million of which $ 548 million came from the institutions and $270 million from Indian investors. The issue was oversubscribed by over seven times, out which retail investors portion was oversubscribed over two times.
Post-ADS, 10.6 per cent of Satyam's equity will be in represented in the form of ADS. Further, 36 per cent will be with foreign institutional investors, mutual funds (16 per cent), 15 per cent with NRIs and general public and 23 per cent with the promoters.
The proceeds of the issue will be used by the company towards retiring debts of $26 million, funding expansion of $45 million and the remaining towards strategic acquisition.
Ramalinga Raju, chairman and managing director, Satyam Computer said, "The company is looking at hiring 3,500 people and are currently watching the market trends on this front." Raju further added, "The acquisition strategy would be clear and straight forward and would be looking at acquiring companies which have high level of synergy with Satyam's existing business.
Raju also added, " Europe presents fair amount of opportunities for growth and Satyam is looking at laying special emphasis on the Japanese market."
Satyam's listing occurred seven months after the government authorised the company to raise up to $310 million. The timing was prompted by the rebound in technology stocks in the past month.
Analysts said the listing will enhance Satyam's stature in its top market, the US, where other Indian software majors Wipro Ltd and Infosys Technologies are already listed. Altogether nine Indian companies, including Satyam's subsidiary Satyam Infoway, are listed in the United States.
