Vitar shoots up 10.48pc on first day of trading

PUBLISHED : Thursday, 13 November, 2008, 12:00am
UPDATED : Thursday, 13 November, 2008, 12:00am

Shares of Vitar International Holdings, a designer and provider of insulation and heat-resistance materials, jumped 10.48 per cent on their first trading day yesterday, the best debut in about four months.

Vitar, which had set its offering price at HK$2.10 each, rose 22 HK cents to close at HK$2.32.

That gave retail investors a paper profit, excluding expenses, of about HK$220 for each board lot of 1,000 shares.

The company only trailed Tianyi Fruit Holdings, which gained 11.11 per cent in its July 10 debut.

'Vitar's debut was better than I expected,' said Nelson Chan Kai-fung, general manager at Bright Smart Securities.

However, as the company was small and many investors were unfamiliar with its business, the stock might find limited room for further gains, he said. 'The recent huge market volatilities will also put additional pressure on the stock,' Mr Chan added.

Vitar raised a net of about HK$40.4 million by selling 28 million shares.

All the proceeds have been earmarked for new production lines for silicone rubber, fibre-glass sleeving products, silicon-based tubing products and high-temperature electric wires.

Chairman Leung Chau-hiu said he was pleased with the stock's performance, noting that the company's listing in such a turbulent market was positive news.

'The raised money through the offering would be sufficient to support our operations in the next one to two years,' said Mr Leung.

The company's revenue rose 16.28 per cent to HK$204.54 million last year while profit increased 7.03 per cent to HK$24.25 million.