Insurance company Shouhui Group shares plunge on debut

Chinese online life insurance company Shouhui Group (2621) once dropped over 14 percent on its debut on Friday, following its decline in the local gray market the previous day.

The shares opened at HK$7.50, down 7.2 percent from its offer price of HK$8.08, and extended losses to HK$6.94 two hours after trading, giving a paper loss of HK$456 on a board lot of 400 shares.

In the gray market, Shouhui performed the worst on the Bright Smart Securities’ platform, closing at HK$7.59 – 6.1 percent below its IPO price.

Meanwhile, two new listings kicked off bookbuilding on Friday and will be open for subscription until Thursday next week.
 
Artificial sweetener manufacturer Newtrend Technology is offering shares at a price range of HK$18.90 to HK$20.90, aiming to raise up to HK$220 million. Each board lot consists of 200 shares, requiring a minimum investment of about HK$4,222.16. It is expected to be listed on June 10, with CMBC International Capital as the sole sponsor.

The other offering comes from Rongta Technology (Xiamen) Group, a provider of automatic identification and data capture devices and solutions. The IPO price range is set at HK$10 to HK$12, also targeting up to HK$220 million in proceeds. Each board lot is 500 shares, with a minimum investment of around HK$6,060.51. The company is also expected to be listed on June 10, with Yue Xiu Capital acting as sole sponsor.

Also, Chinese IT services company Unisplendour has filed for a Hong Kong listing. Beijing-based Unisplendour could raise about US$1 billion (HK$7.8 billion) in the share sale, Bloomberg News has reported previously.

STAFF REPORTER