Saturday, May 25, 2019
Martin Hennecke

Fosun's IPO price set at lower end
Fosun Tourism Group, the unit of billionaire Guo Guangchang's drugs-to-insurance conglomerate that's seeking to raise as much as US$548 million (HK$3.78 billion) in a Hong Kong initial public offering, expects to price the deal toward the bottom of a marketed range. The company, which owns luxury resort brand Club Med, has received enough orders to cover the portion of the IPO set aside for institutional buyers, according to a message communicated to fund managers yesterday. Investors' price sensitivity is toward the low end of the range, which runs from HK$15.60 to HK$20 per share. Fosun Tourism aims to begin trading December 14. It has attracted Alibaba, Shun Tak (0242) and Suchuang Gas as cornerstone investors. Meanwhile, three newly listed companies all closed lower than their IPO prices on their main board debut. iDreamSky Technology (1119), an online gaming distributor backed by tech giant Tencent (0700), slumped 8.64 percent to HK$6.03, compared with its IPO price, with a turnover of HK$264.44 million. Chief executive officer Chen Xiangyu said iDreamSky was seeking long-term returns on investments and believed that the company's revenues would continue to grow in the future, adding that it will collaborate closely with its shareholders on content and technology development. iDreamSky's chief marketing officer Mario Ho Yau-kwan, 23, is the third son of casino tycoon Stanley Ho Hung-sun, from his fourth "wife" Angela Leong On-kei. Leong and her son Arnaldo Ho Yau-heng, Mario Ho's older brother, were also present for the stock listing ceremony yesterday. In addition, mainland property management firm Kaisa Property (2168) traded 1.49 percent lower than its IPO price, closing at HK$9.24 while Chinese-controlled coal miner Yancoal Australia (3668) closed at HK$23.35, 0.55 percent lower than its IPO price of HK$23.48. In other news, WuXi AppTec, a Shanghai-listed Chinese contract medical researcher, is giving investors guidance that it may price its Hong Kong IPO at HK$70, higher than the midpoint of its indicative price range of HK$64.1 to HK$71.5. Mobvista, a Chinese mobile marketing company, has raised HK$1.28 billion after pricing its Hong Kong IPO slightly above the bottom of the indicative price range of HK$3.9 to HK$5.1.

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