Friday, February 22, 2019
Martin Hennecke

Debutants trade mixed
Two out of four companies had a dismal debut yesterday, closing below their offer prices as investor sentiment remained fragile after the recent rout in the global equity market.

Time Interconnect Technology (1729) closed at 42.5 HK cents, 15 percent below its IPO price of 50 HK cents per share, or a paper loss of HK$600 per board lot of shares.

Top Standard Corp (8510) fell 5.7 percent, which means a paper loss of HK$160 for every board lot of shares.

In contrast, Mecom Power and Construction (1183) posted a healthy 9.6 percent gain, which can bring investors a paper gain of HK$240 per board lot of shares. The fourth firm, Gain Plus Holdings (8522), ended the first day of trading of its shares up 1.3 percent.

Two firms will make their debut today on the local market's growth enterprise board.

DCB, a local fitting-out and renovation services provider, said the retail tranche of its IPO was oversubscribed 31 times and it raised HK$37.1 million from its offering. It priced its IPO at 75 HK cents, in the middle of its indicative range of between 62.5 HK cents and 87.5 HK cents. Its share price closed 4 percent higher at 78 HK cents in gray market trading yesterday.

Local biometrics identification solutions provider Prime Intelligence Solutions Group priced its IPO at 35 HK cents, the upper level of the 27 HK cents and 35 HK cents indicative price range. The retail tranche of its IPO was oversubscribed 93 times and it raised HK$44.5 million net. Investor interest in its shares was keen as its share price closed 28.57 percent higher at 45 HK cents.

In other IPO action, Alibaba-backed Ant Financial Services Group is planning a new round of fundraising as soon as this month to raise US$5 billion (HK$39 billion).

Ant Financial is reportedly looking at possible dual listing, with either Hong Kong or New York as a listing venue and the other in Shanghai.

Meanwhile, Jiangxi Bank will reportedly list on the local market in the first half of this year to raise between HK$5.48 billion and HK$6.26 billion. It is the only provincial city commercial bank in Jiangsu province.

Elsewhere, Mi Ming Mart Holdings (8473) yesterday tumbled, closing 12.5 percent lower after a modest gain on its debut on Monday.

Its share price closed at 24 HK cents yesterday compared to its closing price of 28 HK cents on Monday.

Previous news : Guangzhou R&F issues profit warning


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