Jiangsu Nandasoft soars 158pc on debut as IT companies win support
Computer-network security software developer Jiangsu Nandasoft's share price surged 158.33 per cent above its placing price on a Growth Enterprise Market (GEM) debut yesterday despite a weak sentiment on the second board.
The Jiangsu province-based H share rocketed to 90 HK cents from its placing price of 36 HK cents in morning trade. The price rose to close at 93 HK cents.
The company was the most traded stock on the GEM board with about 140 million shares changing hand on turnover of HK$119.77 million. It was also the sixth most-traded stock on the stock exchange.
Analysts said the surge was likely due to the concentration of the shares in the hands of a few investors.
James Liu, a member of GEM's listing committee, said the Nasdaq - whose movement also affected the fledgling GEM - had bottomed out.
'The bursting of the hi-tech stock bubble has squeezed out a number of Internet companies. Investor interest is shifting towards companies engaged in IT infrastructure.'
He said more mainland firms involved in software development would seek GEM listings.