Who's the winner in Wynn-Wing situation?
Chinese-language financial websites carried the surprising news yesterday that shares in Wing Lei - the Cantonese name for Wynn - had soared as much as 90 per cent.
The headlines suggested a scorching debut for casino operator Wynn Macau's HK$12.6 billion listing on the Hong Kong stock market.
There was just one catch: shares in Wynn Macau only begin trading today.
Instead, the company with the surging stock was Wing Lee Holdings, a manufacturer of electronic components for use in computers and telecoms equipment whose shares closed at a 12-month high of 70 cents yesterday.
'The board of directors has noted today's increases in the price and trading volume of the shares of Wing Lee Holdings Limited and wishes to state that the board is not aware of any reasons for such increases,' the small-cap firm said yesterday in a stock exchange announcement.
The first two Chinese characters for the names of both Wing Lee and Wynn are identical, and translate literally as 'perpetual profit'. Wing Lee's unexplained share surge yesterday could perhaps be due to investors betting on a 'Wing-Wing' combination, although this seems unlikely. Wynn owns and operates the Wynn Macau, a 600-room casino resort with revenue of HK$14.7 billion last year. Its listing today is Hong Kong's second biggest so far this year.
Wynn's shares in the pre-listing grey market closed at HK$10.30 apiece last night, according to Phillip Securities. That represented a 2.18 per cent premium to Wynn's top-of-the-range HK$10.08 offer price.