(Yicai Global) Nov. 11 -- Chinese technology innovation online media service provider 36Kr Holdings, which listed on the US Nasdaq Stock Market on Nov. 8, fell flat on its debut.

Beijing-based 36Kr's stock price [NASDAQ:KRKR] kicked off 13 percent lower than its initial public offering price of USD14.5 but revived to close down 9.9 percent at USD13.1, but 36Kr's Chief Executive Feng Dafeng shrugged off this chilly reception. 

Feeble demand also prompted 36Kr to slash its issue from 3.6 million American depositary shares to 1.4 million, priced at USD14.5, the bottom of the marketed range. This meant that the firm only raised about USD20 million, over 60 percent less than planned.

Feng had not foreseen a drop below the offer price, he said in an interview with Yicai Global on the day of the IPO, adding "The stock price reflects market sentiment, while value lies in the business. The market mood is just froth."

The paid content business model is unsuited to China's market environment, Feng noted, turning to the challenges currently confronting the media sector. Users have got used to free news content and pay walls will not generate much new revenue, but they may greatly reduce a media's own influence.

36Kr's revenue comes from online advertising services, corporate value-added services, and comprehensive marketing, consulting and subscription services. The company postedCNY299 million (USD43 million) in revenue last year, an almost one and a half times rise on the year. Its revenue jumped 179 percent to CNY202 million in the first half, with about a third from online advertising, half from corporate value-added services, and one-fifth from subscription services, public information shows.

With value-added services contributing so much to its total income, 36Kr has always called itself an open platform dedicated to serving China's new economic players, rather than just a media platform.

Editors: Tang Shihua, Ben Armour