Initial public offerings had one of their worst sessions on the local bourse yesterday.
PanAsialum (2078) opened 4.6 percent below its offer price. It then tumbled as much as 14.3 percent, closing at HK$3.59, down 13 percent - marking the worst debut among IPOs so far this year.
Investors in the Guangdong-based iPad aluminum case maker stood to lose HK$540 per board lot of 1,000 shares.
Time Watch Investment (2033), meanwhile, rose just 2 percent above its offer price on its first trading day.
Last week, Chinalco Mining Corporation (3668), the largest IPO of the year, closed 6.3 percent lower on its debut.
PanAsialum is the second largest IPO this year. It raised HK$1.24 billion. Executive director Leung Chi-wing, however, was optimistic, saying he was banking on higher iPad sales. He said the company could keep the gross profit margin stable while transferring the volatile raw materials cost to clients.
Time Watch opened nearly 10 percent above its IPO price and was traded between HK$1.37 and HK$1.51. It closed at HK$1.38, up 2.2 percent from the offer price.
Investors stood to gain HK$60 per 2,000-share board lot.
"We plan to open another 200 stores by June,"said Tung Koon Ming, chairman of the mainland timepiece maker. As of September 30, 2012, Time Watch operated 1,706 sales points across China.
He also said he was comfortable with the the firm's 210 inventory days - down from 219 days as at the end of September last year.