Taomee shares fall in NYSE debut

NEW YORK, June 9 (Reuters) – Shares of China-based Taomee Holdings Ltd, which operates a website for children, fell in their stock market debut Thursday.

The shares were at $7.70 or 14.4 percent below their IPO price in early trading on the New York Stock Exchange. The company on Wednesday sold 7.2 million American depositary shares for $9 each, raising $64.7 million. It had planned to sell shares for $9 to $11 each.

Taomee is coming to market just as U.S.-listed Chinese companies are coming under more scrutiny following a series of accounting scandals.

A number of Chinese stocks took a beating in trading on Wednesday after Interactive Brokers Group Inc said earlier this week it would prohibit clients from borrowing money to take leveraged positions on 160 Chinese securities.

Discount brokerage TD Ameritrade said it is closely monitoring Chinese stocks in the United States.

Underwriters on the Taomee IPO were led by Credit Suisse and Deutsche Bank Securities. (Reporting by Clare Baldwin; Editing by Derek Caney)