BExcellent Group Holdings yesterday said that the retail tranche of its initial public offering was oversubscribed 287.65 times, in a sign that investors are still interested in IPOs in the face of market jitters over the trade war.
Shares of the company, which gets listed on the main board today, closed over 20 percent higher in the grey market yesterday.
According to Bright Smart (1428), BExcellent ended at HK$ 1.33, up 23.15 percent from its IPO price of HK$1.08. That would mean subscribers gained HK$1,000 for each board lot held.
The education service provider aimed to raise HK$95.20 million in Hong Kong, and received 15,582 applications in total.
"The satisfactory response to the share offer demonstrates the investing public's confidence in the business model and prospects of BExcellent Group. Being a leader in private supplementary secondary school education business, the group is well-poised to capture opportunities arising from a favorable market trend," said chairman June Leung.
In contrast, 51 Credit Card said its retail tranche was undersubscribed, and the company will price its shares at HK$8.5, the lower limit. It previously priced its issue at between HK$8.5 and HK$11.5.
Meanwhile, Tencent Holdings (0700)-backed Inke (3700), which went public yesterday, once surged to HK$5.48 during trading, 42.3 percent higher than its IPO price of HK$3.85. It ended at HK$4.26. The company has been in talks with the technology giant Tencent for possible collaborations, said Feng Yousheng, its chairman and chief executive.
Another Tencent-backed company, Koolearn.com, reportedly is seeking to raise as much as US$400 million (HK$3.14 billion) in a Hong Kong IPO.
In other news, movie and television post-production house VHQ Media Holdings plans to spin off its China operations and list the unit in Hong Kong to help fuel ambitious growth targets in the booming Chinese movie industry.
The Taipei-listed visual effects company expects to be ready for an initial public offering in the next 12 to 18 months, VHQ Chairman Low Kok Wah said.
VHQ sees a share sale in Hong Kong as a way to boost its presence in China, the world's second-largest movie market, as well as offering a better valuation, Low says.
"Our future growth in China will be funded in great part by Hong Kong," he said. "
Low said he has talked with what he called the "big boys" about bringing them in as cornerstone investors in the last stage before the Hong Kong IPO, without identifying any of the companies. Alibaba Group Holding and Dalian Wanda Group are among the companies VHQ has previously worked with.