Gray market gains ahead of debutBusiness | Carrie Chen 12 Jan 2017
Two of three companies, whose shares will start trading today on the main board, posted double-digit gains in gray market trading yesterday, raising hopes of a reasonably strong debut.
ISDN Holdings (1656), a Singaporean motion control solutions provider, closed at HK$1.66 on Phillip Securities' platform, 32.8 percent higher from its offer price, yielding a paper profit of HK$820 for each minimum lot of shares.
Its share price closed at HK$1.65, up 32 percent on the Brightsmart Securities platform, or a paper profit of HK$800 for one minimum board lot of shares.
The company raised HK$39.9 million and the retail tranche of its IPO was oversubscribed 1,891 times.
Morris Holdings (1575), a mainland sofa maker, gained 19 percent on both the Phillip Securities and Brightsmart trading platforms as its share price closed at HK$1.25. Investors earned a paper profit of HK$400 per minimum lot of shares.
It priced its IPO at HK$1.05 apiece, the lower end of an indicative range and it raised HK$219 million.
Its retail tranche was oversubscribed by 4.9 times, while its international tranche was slightly oversubscribed.
In contrast to the strong showing in the gray market of ISDN Holdings and Morris Holdings, the share price of Jilin Jiutai Rural Commercial Bank (6122) rose by a mere 0.22 percent to HK$4.56. The retail tranche of its IPO was oversubscribed by 9 percent and it raised HK$2.55 billion. The mainland lender priced its IPO at HK$4.56 per share, near the lower end of an indicative range.
Each minimum lot of 1,000 shares cost HK$4,605.96.
Meanwhile, trading in the GEM board remained highly volatile, with the share price of Bar Pacific (8432) spiking 1,296.6 percent to HK$4.05 as it made its debut yesterday. It priced its public offering at 29 HK cents.
Local travel agency WWPKG Holdings (8069), whose shares will start trading today on the GEM board saw its share price spike by as much as 35 percent in gray market trading yesterday.
But its share price subsequently closed 17.5 percent higher on the Phillip Securities platform and posted an increase of 15 percent on the Brightsmart Securities facility.
It priced its IPO at 80 HK cents, the upper point of an indicative range. It raised HK$57.8 million.
In the main board, Yuk Wing Group (1536) suffered a setback on its debut as its share price closed 8.7 percent lower at HK$1.05. Investors suffered a paper loss of HK$200 on each minimum lot of 2,000 shares.