JBB Builders slumps in gray marketBusiness | Avery Chen 10 May 2019
Shares of the Malaysian engineering contractor JBB Builders (1903) fell 23.73 percent to HK$0.9, compared with its offer price, in the Bright Smart gray market last night ahead of its board debut today.
JBB Builders raised HK$120 million after pricing its IPO at the bottom of the targeted offer price range at HK$1.18.
The company intends to spend 57.9 percent of the total net proceeds to acquire one rebuilt sand carrier from one of its existing subcontractors for marine transportation services. About 23.4 percent will be used for satisfying performance bonds requirement of prospective projects.
Other net proceeds will be used to buy new land-based machinery, recruiting and expanding its management team, upgrading information technology and project management systems and for working capital.
Meanwhile, shares of drug discovery platform operator Viva Biotech (1873) closed at HK$4.41, 0.23 percent higher than its IPO price on its first trading day.
In other news, China Tobacco International (HK) Company, a subsidiary of China National Tobacco Corporation, is pre-marketing a Hong Kong IPO of about US$100 million (HK$780 million) to US$200 million, Reuters IFR reported.
Chinese state-owned tobacco monopoly China National Tobacco Corporation is the world's largest cigarette producer, selling 98 percent of all cigarettes in China.
Established in 2004 and headquartered in Hong Kong, China Tobacco International is principally engaged in the import and export of tobacco leaf products, cigarette exports and new tobacco products exports.