Mixed results for IPO debuts

Business | 16 Jul 2020

Avery Chen

Three of six debutantes ended above their IPO prices yesterday, with Archosaur Games (9990) up 75 percent.

The Tencent (0700)-backed game developer saw shares jump to HK$20.30 from the offer price of HK$11.60, meaning investors could pocket HK$8,700 per board lot of 1,000 shares. Its full day turnover was HK$2.58 billion.

Mainland production company Cathay Media (1981), of which PCCW (0008) chairman Richard Li Tzar-kai is a cornerstone investor, saw its price rise 58.71 percent to HK$4.92 yesterday.

Mobile game publisher Sino-Entertainment Technology (6933) rose 4.29 percent to HK$1.70.

But China New Energy (1156), a ethanol production system producer, fell 28.57 percent to 70 cents, despite its shares rising fivefold at one stage in Futu Securities' gray market on Tuesday.

Shanghai-based developer Ganglong China Property (6968) fell 0.25 percent to HK$3.92, while Dashan Education (9986), an after-school education services provider, fell 10.4 percent to HK$1.12.

China Bohai Bank (9668), a medium-sized lender backed by Standard Chartered (2888), traded just below its IPO price in gray markets last night.

It raised HK$13.47 billion after pricing its public share at HK$4.80 each, the bottom of indicative price range, as its retail portion was not fully covered.

Piped natural gas operator JiaXing Gas (9908) rose over 30 percent in gray markets, while poultry producer Shandong Fengxiang (9977) traded higher than its offer price by 3 percent to 7 percent.

These came as Chinese television maker Skyworth Group (0751) plans to spin off Shenzhen Coocaa Network Technology in Hong Kong or Shenzhen, according to a statement last night.

Asian firms accounted for almost half of global IPOs in the first half due to a biotech IPO boom and mega-secondary listings by Chinese companies, raising US$46.2 billion (HK$360.36 billion) through public shares in the first six months of this year.

This amounts to 49 percent of total fundraising globally - the highest proportion in a decade, according to Bloomberg.

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