Xtep drops 6.17pc on trading debut

PUBLISHED : Wednesday, 04 June, 2008, 12:00am
UPDATED : Wednesday, 04 June, 2008, 12:00am

Shares of mainland fashion sportswear maker Xtep International Holdings dropped 6.17 per cent on their trading debut yesterday.

The shares, which were priced at HK$4.05 each, the bottom of the offering's indicative range, to raise HK$2.23 billion, fell 25 HK cents to close at HK$3.80.

Retail investors suffered a paper loss, excluding charges, of about HK$125 for each board lot of 500 shares.

'Xtep's comparatively small size limits its appeal to local investors and the market downturn [yesterday] also weighed on the stock's performance,' said a fund manager.

The volatile market has led six out of 10 new stocks, including Xtep, into negative territory on their debuts this year. Xtep is the second-worst-performing retail stock on its first trading day so far, just behind costume jewellery maker Artini, which shed 9.91 per cent.

Xtep's bigger rivals, Li Ning and Anta Sports Products, declined by 0.91 per cent and 2.44 per cent to close yesterday at HK$21.80 and HK$8, respectively.