Shares of Chinese battery giant Contemporary Amperex Technology (3750) once surged 12 percent to HK$343.40 on Wednesday, after it raised an extra HK$5.3 billion by fully exercising the over-allotment option, also known as the greenshoe option.
This came after the company on Tuesday raised US$4.6 billion (HK$35.88 billion) in its Hong Kong listing.
The issuance of 20.3 million additional shares has further boosted the size of thus far the world’s largest initial public offering this year.
However, legendary activist investor David Webb has raised concerns over the stock’s low free float in Hong Kong.
Only 3.4 percent of all of CATL’s shares are listed in the city, with the bulk traded in Shenzhen.
Of the Hong Kong shares, nearly half or 77.46 million shares are subject to a lock-up period until November 19, significantly limiting the available free float, Webb wrote on his website.
He also noted that the top 25 holders of CATL’s Hong Kong listing hold close to 70 percent of the local shares.
CATL jumped 16.4 percent from its HK$263 offer price on its trading debut in Hong Kong on Tuesday.
STAFF REPORTER
