Alibaba-backed Baozun's shares seesaw in choppy debut

By Richa Naidu (Reuters) - Shares of China's Baozun Inc, in which Alibaba holds a nearly 20 percent stake, traded erratically in their debut on Thursday, sending the e-commerce services company's valuation seesawing. The company's American Depository Shares (ADSs) touched a high of $11.28, valuing it at $548.3 million, before reversing course all the way down to $9.23 per ADS. The 11 million ADSs offered were priced at $10 each, well below the $12-$14 range initially set by the underwriters. "They priced it too aggressively," Francis Gaskins, president of IPO research firm IPOpremium.com said, adding that at the midpoint of the initial range, the shares would have been valued at 500 times annual earnings. Baozun provides website design, digital marketing and logistics services for retailers and brands hopping onto China's e-commerce bandwagon. It counts Haagen Dazs, Nike, Guess and Microsoft among its more than 100 clients that are competing fiercely in China's thriving online market, dominated by Alibaba Group Holding Ltd. Alibaba's investment arm is Baozun's top shareholder, with an 18.2 percent stake. The company, which raised $110 million from the IPO, falling well short of its initial $129 million target, said it intended to split the proceeds between improving existing operations and making acquisitions. The company reported a net loss attributable to ordinary shareholders of about $25.1 million and total net revenues of about $255.4 million last year. Baozun's shares were up 7.5 percent at $10.75 on the Nasdaq by at 12:20 p.m. ET, with more than 6.5 million shares changing hands. (Editing by Simon Jennings)