Chinese software developer makes a play for a US IPO

Posted Jul 17th 2009 10:00AM by Tom Taulli
Filed under: China

As seen with the recent offerings of companies like Changyou (NASDAQ: CYOU), the interest in Chinese tech IPOs is starting to rev up.

Now, there's another deal that plans to hit the market: CDC Software Corporation.

The company develops enterprise software that helps customers to grow revenues and reduce costs -- such as by automating business processes and providing access to critical data. Some of the functions include enterprise resource planning (ERP), supply chain management (SCM) and customer relationship management (CRM).

Of course, by having operations in China and India, CDC has been able to derive cost advantages, without suffering from a fall in quality.

In fact, over the past three years, CDC has grown at a rapid clip as revenues have gone from $174.7 million to $240.7 million. However, the growth rate has fallen lately because of the global recession.

Despite this, CDC has built a solid platform. And with its IPO proceeds, the company can bolster its positions with acquisitions.

In its public offering, CDC plans to issue 4.8 million shares at $11-$13 a piece. The lead underwriters include Lazard Capital Markets (NYSE: LAZ) and JMP Securities. You can also locate the IPO prospectus as the SEC's website.

Tom Taulli is the author of various books, including The Complete M&A Handbook, You can reach him at his personal blog.

Tags: CDC Software, CdcSoftware, IPOs