Speedy Global reignites IPO fever with 39pc rally

PUBLISHED : Wednesday, 16 January, 2013, 12:00am
UPDATED : Wednesday, 16 January, 2013, 3:41am


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Shares of supply-chain manager Speedy Global surged on their debut in Hong Kong yesterday, signalling a recovery in investors' appetite for small and mid-cap stocks and sparking listing hopes for other small firms.

"As the first local initial public offering this year in Hong Kong, Speedy Global underscored robust sentiment towards small new listings, underpinned by inexpensive valuations," said a Hong Kong-based fund manager who requested anonymity.

The city's retail investors had been enthusiastic recently about companies that could cash in on the mainland's new emphasis on consumption amid speculation that this sector might be the best positioned to benefit from the new leadership's push towards greater urbanisation, according to the head of the retail branch of a major Hong Kong broker, who refused to be named.

Speedy Global manages supply chains for the apparel and garment industry.

The stock soared 39.02 per cent to close at HK$1.14 yesterday after surging as much as 56.1 per cent in the morning. The Hang Seng Index dipped 0.14 per cent for the day.

Speedy Global surpassed local cha chaan teng operator Tsui Wah to become the third-best first-day performer among the companies that have listed their shares in Hong Kong since the beginning of last year, after Sunley and China Putian Food.

The Guangdong-based firm raised HK$123 million through its Hong Kong IPO after pricing its shares at the top end of the offering range.

Property developer Golden Wheel Tiandi starts trading on the main board today. Its share offer has raised HK$756 million.

Still waiting in the pipeline is toymaker Quali-Smart, which plans to raise as much as HK$90 million and will start trading on January 23. Mainland watchmaker Time Watch Investments will kick off its HK$780 million IPO next week.