It's all zen for game player debutBusiness | Avery Chen and Bloomberg 17 Apr 2019
Shares of Zengame Technology (2660), the Shenzhen-based card and board mobile games developer, surged 30.89 percent to HK$1.61 compared with its initial public offering price on its market debut, with market turnover of HK$500 million.
The company is the fifth-largest player in the card and game market in the mainland in terms of revenue in 2017 with a market share of about 4 percent, according to Frost & Sullivan.
Established in 2010, the company was cofounded by Jason Zeng Liqing, who is also a cofounder of Tencent (0700) as well as the founder of angel investment firm Shenzhen Decent Capital.
Zengame's game portfolio includes 44 self-developed and third-party-developed games, including 19 card games, 14 board games and 11 other casual games and hardcore games.
When asked about China's regulators freezing new gaming approvals for nine months last year, chairman Ye Sheng did not think the policy would affect Zengame in the long term.
He said the company received two new game approvals after licensing resumed in December and expects to launch three to five games per quarter.
Meanwhile, mainland brokerage Shenwan Hongyuan has been oversubscribed several times.
China's sixth-largest brokerage by market value is seeking to raise as much as HK$9.8 billion at an indicative price range of HK$3.63 to HK$3.93 apiece. It aims to price the offering tomorrow before beginning trade April 26.
The initial public offering would be the largest first-time share sale in Hong Kong this year amid a relatively slow start.
The offering has attracted 13 cornerstone investors, who agreed to subscribe for a total of about US$829 million (HK$6.44 billion) of stock.