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Shares in fuel oil supply, storage and distribution specialist Andatee China Marine Fuel Services (ACMF) slid in their trading debut on the NASDAQ stock exchange yesterday as the company sold over 3.1 million shares at the low end of the expected pricing range.

Andatee said it raised $19.8 million in the initial public stock offering (IPO), which had been initially scheduled to price on January 21st.

The company increased the number of shares being offered to 3,134,900 shares from 2.5 million. The shares were offered at $6.30, within its proposed range of $6.00 to $8.00 per share, which had been set by underwriters Rodman & Renshaw LLC and Newbridge Securities Corp.

After opening at its $6.30 offer price, shares of the Dalian-based bunker supplier slid by 8.4 percent to $5.77.

Andatee China Marine Fuel Services Corp. is engaged in the production storage and distribution of blended marine fuel. The company's operating business Dalian Xingyuan Marine Bunker Company Ltd. supplies mainly 180-centistoke (cst) and 120-cst product to small and medium-sized fishing vessels and cargo ships in the provinces of Liaoning, Shandong and Zhejiang.

Dalian Xingyuan was founded in 2001 and currently operates three bunkering tankers and one specialized oil supply wharf.

Andatee's sales revenue declined in 2008 during the global economic downturn, but picked up again during the first three quarters of 2009, rising by 32 percent to $85 million. Profit doubled to $4.7 million compared with the same period in 2008.

According to Dalian Xingyuan, the company supplies over 250,000 tonnes per year in Dalian to customers such as Dalian Shipping Ring Group and Sinopec. Its short term goal is to attain annual sales of 350,000 tonnes within the next two years and has set itself the long-term objective of selling between 500,000 tonnes and 1 million tonnes per year, achieving an annual sales income of 4 billion Yuan and becoming a major fuel oil player in northeastern China.