Friday, July 10, 2020
Martin Hennecke

Smokin' hot IPO is 101 times oversubscribed
<p>Two mainland companies start trading on the main board today with China Tobacco International (HK) (6055), the international unit of the world&#39;s largest cigarette producer, rising 2.46 percent to HK$5 in the Bright Smart gray market last night.</p><p>The spinoff of state-owned tobacco monopoly China National Tobacco Corporation has raised HK$735 million and priced its initial public offering at the higher end of its targeted price range at HK$4.88 as the flotation was 101.04 times oversubscribed in the retail tranche and had received &quot;significant oversubscription&quot; in its international tranche.</p><p>The other newly listed company, China East Education (0667), the largest vocational training education provider in mainland China, saw its shares decline 2.93 percent to HK$10.92 in the gray market ahead of its debut. The Anhui-based company has raised HK$4.77 billion, becoming the biggest IPO among listed education companies, after pricing its IPO at HK$11.25, higher than the midpoint of its indicative price range. The IPO was only 76.1 percent subscribed.</p><p>Meanwhile, Guangdong-based education firm Scholar Education launches an IPO today to raise as much as HK$585 million, offering 124.9 million shares at HK$3.64 to HK$4.68. The minimum investment is HK$4,727.16 per lot of 1,000 shares.</p><p>It expects to list on the main board on June 21.</p><p>And Jinxin Fertility, an assisted reproductive services provider in the mainland, will launch a Hong Kong IPO tomorrow of HK$3.05 billion, with a minimum investment of HK$17,252.</p><p>In other news, Shanghai&#39;s Sci-tech Innovation Board has drawn 120 firms in the two months since applications opened and the IPOs are expected to raise a total of US$16 billion (HK$124.8 billion).</p>

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