Medical firm soars 170pc in gray trade

Staff reporter

Two mainland firms start trading today in Hong Kong, and one of the debutants, Guanze Medical Information, Industry (2427) surged as much as 170 percent in the gray market yesterday.

The medical imaging solutions provider closed 160.38 percent higher at HK$1.38 on the platforms of both Phillip Securities and Bright Smart Securities, giving investors a paper gain of HK$4,250 per board lot of 5,000 shares

The Shangdong-based firm raised HK$73 million in net proceeds from the initial public offering after pricing its shares at HK$0.53, the bottom end of the indicative range.

Its retail tranche was over 13 times oversubscribed with the international tranche slightly oversubscribed.

The company plans to use 46.4 percent of the net proceeds to grow its customer base in the eastern part of Shandong Province while 37.3 percent will be used for strategic acquisitions, obtaining a medical device registration certificate, and technological upgrades.

The other debutant, Chinese variety show producer Star CM (6698), jumped 47 percent to HK$39 on Futu Securities's gray market, suggesting a paper gain of HK$5,000 per board lot of 400 shares. It also ended 37 percent and 33 percent higher on the platforms of Phillip Securities and Bright Smart Securities respectively.

Star CM saw the net proceeds from its Hong Kong IPO come in at HK$320 million after pricing its shares at HK$26.5 apiece, near the bottom end of its marketed range. Its retail tranche was more than four times oversubscribed.

Star CM is the producer "Sing! China," formerly known as "The Voice of China," a singing contest which enjoyed huge popularity when it launched in 2012.

It also created other variety shows such as "Guess the Singer!" and "Sing My Song" and it co-produced "Street Dance of China" with video streaming platform Youku.