CATL rose 10pc in gray market ahead of Tuesday debut

Chinese battery giant Contemporary Amperex Technology once rose nearly 10 percent in Hong Kong gray market ahead of its debut on Tuesday, giving a paper gain of HK$2,540 on per board lot of 100 shares.
It once tipped HK$288.4, 9.7 percent higher than the offer price of HK$263 on Phillip Securities' platform.
CATL’s shares opened 7.8 percent higher at HK$283.6 and tipped HK$285 on Futu Securities' platform.
Investors are advised to stay calm on the debut, as analysts projected a 5-10 percent rise, given the huge size of its market capitalization. 
Although the prospects of the stock look promising, with strong fundamentals and a high possibility of becoming a constituent of the benchmark Hang Seng Index within the year, the chance of the H-shares having a premium over the A-share is relatively low, said Dickie Wong, executive director of research at Kingston Financial Group.
“People do not need to rush for the IPO because the shares have been available for purchase via the Stock Connect for a long time, and they should not expect CATL to jump 30 percent or more on its debut like Mixue Group (2097) did,” Wong said.
His comments were echoed by Kenny Ng Lai-yin, securities strategist at Everbright Securities International, who suggested investors take profit on the debut if the prices rise above 5 percent. 
CATL closed 0.24 percent higher at 260 yuan (HK$282.07) in Shenzhen on Monday.
The company earlier expanded the share sale scale to 135.6 million shares, raising HK$35.9 billion, compared to the starting fundraising size of HK$31 billion.
STAFF REPORTER