Shares of Chinese car maker Chery Automobile (9973) jumped 11.2 percent as the company started trading on the Hong Kong Stock Exchange on Thursday following its US$1.2 billion (HK$9.36 billion) initial public offering.
Chery, best known for its Chery, Jetour and iCAR brands, is tapping investor appetite as it expands in the competitive electric and smart vehicle market.
The stock opened at HK$34.2 each, while the Hang Seng Index was up 0.1 percent.
Chery last week sold 297.4 million shares at HK$30.75 each in the second-largest IPO in Hong Kong so far this year.
The company's shares were sold at the top of the HK$27.75 to HK$30.75 price range flagged to investors when the deal was launched.
The institutional tranche of the deal was oversubscribed 11.6 times, while the retail portion was 308 times covered, Chery's filings showed.
Cornerstone investors bought US$587 million in the IPO, the prospectus showed.
Chery said it would use 35 percent of the IPO proceeds for research and development on passenger vehicles of different models and further expand its product portfolio.
A further 25 percent would be spent on developing its next-generation vehicle in the next three years.
Zijin Gold International is currently raising US$3.2 billion in an IPO and its shares are due to start trading on Tuesday. That IPO will be the largest of its kind in Hong Kong in four years.
REUTERS
