China Tower (0788) ended at its initial offering price of HK$1.26 in Hong Kong trading debut after completing the world's largest IPO in two years, averting a repeat of smartphone maker Xiaomi (1810) disappointing coming-out party last month and easing concerns about future IPO prospects.
The state-run company giant, who was involved in an intelligent properties scandal last month, would disclose the case in accordance to the procedure if necessary, said its chairman Tong Jilu after the listing ceremony in Hong Kong.
China Tower highly respects intelligent property rights, he emphasized, adding that the telecom tower operator has great growth potential.
This IPO kept the Beijing-based company's market value to about HK$219.80 billion, which is almost 20 percent below the valuation it was hoping for as recently as a couple of weeks ago.
The fact that it didn't slump allowed China Tower to avoid becoming another Xiaomi, which initially saw itself storming into Hong Kong as an HK$785 billion company only to face a series of setbacks that resulted in the smartphone maker debuting at about half that amount. Hong Kong's IPO market is hot - the amount of money being raised is headed for the best year since 2016 - with Chinese restaurant review and delivery giant Meituan Dianping planning a potential HK$47.10 billion offering later this year.
"China Tower's debut is pretty good considering the market downturn," said Elsie Sheng, an analyst with Orient Securities (Hong Kong). "It will give companies in the pipeline confidence."
It was reported that the group will be included into all MSCI China indices on August 22.
Also yesterday, Nasdaq-listed biotech firm BeiGene (6160) went on trading as well. Its share price was as well little changed, ending at HK$107 while its IPO price was HK$108.