SinoMedia falls 0.38pc on debut

PUBLISHED : Wednesday, 09 July, 2008, 12:00am
UPDATED : Wednesday, 09 July, 2008, 12:00am

Shares of SinoMedia Holding slipped 0.38 per cent on their trading debut yesterday amid the market slump, but the company shrugged off the disappointing performance.

'It is natural to see the share price go up and down, particularly in such a turbulent market,' said SinoMedia chairman Chen Xin.

'We will make our business as good as possible to improve our value.'

With the Hang Seng Index tumbling 3.16 per cent yesterday, SinoMedia closed its first day of trading at HK$2.62, down one HK cent from its offer price of HK$2.63.

Retail investors lost HK$10 for each board lot of 1,000 shares before expenses.

SinoMedia had raised HK$366.62 million from an initial public offering after pricing its shares at the bottom of its indicative range of between HK$2.63 and HK$3.48.

The stock became the 11th new listing this year to fall on its debut. The number of offerings since January has fallen to 18 from about 30 a year ago. Only six of them gained in share value on their debut and one traded flat.

'Investors are shying away from new stocks amid the turbulence,' said Nelson Chan Kai-fung, general manager of Bright Smart Securities.

'Unless there is a mega deal like China Railway Construction Corp's, investors will not put a dime in new offerings now.'