Taomee, an internet social network for children has announced the pricing of its initial public offering of American Depositary Shares on Thursday.
Taomee's stock opened at $8.49 a share on the New York Stock Exchange, down 5.7% from its initial public offering price of $9, and was changing hands recently at $8.47, down 5.9%. A total of 7.2 million shares were sold at the low end of its expected $9 to $11 range.
The admission from Taomee comes at a time when heightened scrutiny of many U.S.-listed Chinese companies and the reliability of their accounts has caused investors to flee their shares.
Taomee says that the company and its auditors found "significant deficiencies in its internal control over financial reporting" and that it lacked enough expertise to comply with U.S. accounting rules.
Taomee is one of the largest online entertainment communities for children in China.
