Mobile gaming giant to kick off $1.3b IPO

Business | Avery Chen and Bloomberg 18 Oct 2019

Chinese mobile gaming giant CMGE Technology will launch its Hong Kong initial public offering as soon as Saturday to raise up to HK$1.31 billion.

The Shenzhen-based company plans to issue 461 million shares at a targeted price range of HK$2.19 to HK$2.83 per share and debut on the main board on October 31, according to Reuters IFR.

The public float has seven cornerstone investors, who have agreed to subscribe shares worth of HK$250 million, including Kuaishou, Bilibili, Weibo, China Literature (0772), Wuhu Sanqi Interactive Entertainment Network Technology, Get Ourpalm, and Peter Lee Ka-kit, joint chairman of Henderson Land Development (0012).

CMGE was established in 2009 as part of V1 Group (0082). The company listed on the Nasdaq by way of introduction in 2012 but delisted three years later.

Meanwhile, shares of Green Future Food Hydrocolloid Marine Science (1084) rose 16.4 percent to HK$1.35 on its debut yesterday. The market turnover was HK$149 million, the latest example of frenzied trading in small IPO in Hong Kong.

However, share prices of newly-listed firms have quickly corrected. Shares of software developer 360 Ludashi (3601) more than tripled to HK$8.6 on October 10 but fell 34.65 percent within a week.

Four other companies start selling shares on the main board today, and all of them rose in the gray market last night.

Sichuan Languang Justbon Services (2606) rose 18.65 percent to HK$43.9, Confidence Intelligence (1967) jumped 57.5 percent to HK$3.15, Centenary United (1959) climbed 7.41 percent to HK$1.16, while Accel Group (1283) went up 31.51 percent to HK$0.96 in the Bright Smart gray market.

In other news, Hong Kong Exchanges and Clearing (0388) is planning a new type of structured product, known as daily leverage certificates, that would start trading as soon as mid-2020, according to people familiar with the matter.

The products will resemble offerings trading in Singapore with three-, five- and seven-times leverage, tracking both indexes and single stocks.

A spokesman for the Securities and Futures Commission declined to comment.

Search Archive

Advanced Search
November 2019
S M T W T F S

Today's Standard



Yearly Magazine

Yearly Magazine