Global Market Group's non-IPO

Early last month, we wrote about Global Market Group's (GMC) overly-optimistic IPO plans. The Wall Street Journal now reports that the Guangzhou-based company's delayed IPO has been scaled back several times.

The original plans called for the company to raise US$132 million by selling 11 million shares at US$11 to US$13 per share.

Now...that has been scaled back to 2 million shares priced at US$6 to US$7 which will result in proceeds of US$13 million - but 1.35 million of those shares will come directly from founder and CEO David Ling. So the company itself will only sell 650,000 shares raising US$4.2 million.

And GMC's management states that the company will only receive about US$1 million after deducting the cost of the underwriting and other expenses.

That is not much of an IPO. After US$3.2 million in fees, the company will pocket US$1 million. No one really makes out well in this deal... except David Ling.