Staff reporter
China Resources Beverage's shares rose as much as 11 percent before closing at HK$16 in gray market trading yesterday ahead of its debut today, giving investors a profit of HK$300 per board lot.
It was preceded by the company pricing its HK$5 billion initial public offering at HK$14.5 apiece, the top of an indicative range, and its retail tranche was reported oversubscribed by 236 times with more than HK$130 billion, could be the largest amount of initial public offering retail tranche subscription in this year.
Investors for the company's IPO were said to place orders worth a total of HK$99.2 billion through margin loans.
Shares of the company, which produces the popular bottled water brand C'estbon, changed hands at HK$15.5 in late afternoon and rose as high as HK$16.1 on the pre-market trading platform operated by Phillip Securities.
Meanwhile, Chinese autonomous driving firm Horizon Robotics is reported to price its shares at HK$3.99 apiece, the top end of the directive range.
At the set price, the IPO is the largest in Hong Kong in 2024, eclipsing China Resources Beverage. It is said to raise up to HK$5.4 billion.
It is also the largest tech sector IPO in Hong Kong since SenseTime Group (0020) raised HK$5.7 billion in late 2021.
The company sold 1.355 billion shares in a price range of HK$3.73 to HK$3.99 each, according to the company's filings.
The retail portion of the deal was covered 34 times, according to a source with direct knowledge, indicating renewed enthusiasm from retail investors for Hong Kong IPOs.
The two deals have given dealmakers renewed hope Hong Kong's IPO market could be showing signs of activity after a near two-year slump.
Besides, automotive specialty chemical manufacturer Jiangsu Lopal opened retail books on Tuesday to raise up to HK$700 million with the minimum investment at HK$3,535.3 per board lot for 500 shares.
Margin financing data showed that the retail tranche was nearly 9 percent subscribed with HK$6 million Tuesday.
