Ming An and Haitian set for modest gains
The last two new listings in Hong Kong this year - Ming An (Holdings) and Haitian International Holdings - are expected to have moderate gains on their trading debuts today after they traded on the grey market at prices 11 per cent and 50 per cent higher than their initial public offering prices.
Investors yesterday placed advance order for shares in Ming An at between HK$2.39 and HK$2.82 - 27 to 50 per cent higher than the stock's issue price of HK$1.88.
Ming An, a Hong Kong-based non-life insurer in which developer Cheung Kong (Holdings) has a stake, raised HK$1.13 billion from an initial offering of 700 million shares. A total of 282,368 Hong Kong investors subscribed for 539 times the shares initially earmarked for them.
Market interest for Haitian, China's largest maker of plastic injection moulding machinery, appeared less enthusiastic. The grey market price for its shares ranged from HK$4.40 to HK$4.90, an 11 to 24 per cent increase on the HK$3.95 issue price.
The Ningbo-based manufacturer raised HK$1.58 billion by selling 399 million shares at the top end of an indicative range after its retail portion was 226 times oversubscribed.
Of the 14 initial offerings in Hong Kong this month, all have delivered good first-day gains with the exception of Sunlight Reit. The best performer was telecommunications engineering service provider China Communications Services Corp, which recorded an 85.45 per cent gain on its December 8 debut.
China Comservice yesterday said it raised an extra HK$426 million after exercising an overallotment option to sell an additional 193.7 million shares at its offer price of HK$2.20 each. This boosted the deal size to HK$3.27 billion. The stock closed at HK$4.34 yesterday.
China Coal Energy also exercised an overallotment option to raise an additional HK$1.97 billion, boosting its offer size to HK$15.12 billion from HK$13.15 billion. The stock closed at HK$4.98 yesterday.