Chinese beauty salon chain soars 53pc in glowing debut

The three newly listed stocks showed mixed performance in their debuts yesterday with Beauty Farm Medical and Health Industry (2373) surging as much as 70 percent at one point.

The Chinese beauty salon chain ended with a 53.5 percent surge to HK$29.65, suggesting a paper gain of HK$5,165 per board lot of 500 shares.

This was after the Shanghai-based firm raised HK$387.2 million in net proceeds from its initial public offering at HK$19.32 apiece. Its retail tranche was more than 21 times oversubscribed.

Founded in 1993, Beauty Farm provides traditional beauty services, aesthetic medical services and health management services through its flagship brand Beauty Farm and three other brands - Palaispa, Neology, and CellCare.

It has 352 stores as of June last year, including 175 franchised stores.

Another debutant, Shenzhen Pagoda Industrial (2411), the mainland's largest fruit retailer, jumped 7.1 percent to HK$6 after soaring over 27 percent at one point.

It raised HK$366 million by pricing its shares at HK$5.6 from the offering, with its retail tranche oversubscribed by 11 times.

Lastly, Chinese mobile game developer Gala Technology (2458) slumped 11.5 percent compared to its offer price of HK$ 6.5, bringing investors a paper loss of HK$300 per board lot of 400 shares.

Meanwhile, two new debuts marked for today saw a contrasting performance among local gray markets last night.

The Shangdong-focused property management service provider Runhua Living Service (2455) fell 15.9 percent from its offering price of HK$1.7 on the Futu Securities' platform. In Bright Smart Securities' gray market, it was down 21.8 percent.

Graphite electrode manufacturer Sanergy Group (2459) climbed 15.6 percent on Futu's platform. It also closed 3.1 percent higher in Bright Smart's gray market.

The company saw its net proceeds from its Hong Kong IPO at HK$186.7 million after shares were priced at HK$1.6 apiece - at the bottom end of the indicative range. The retail portion of the deal was oversubscribed by 8.8 times

Elsewhere, Zoomlion Heavy Industry Science and Technology (1157) proposed to spin off and separately list its subsidiary Zoomlion Aerial Machinery through a reorganization with Shenzhen-listed automotive electronics solution supplier RoadRover Technology.