Satirical magazine publisher Most Kwai Chung makes Hong Kong IPO history with retail offer oversubscribed 6,000 times
Analysts say the demand is due to the popularity of its publications, but is speculative given the relatively small amount of money to be raised
Most Kwai Chung, which runs popular Hong Kong satirical magazine 100Most and a digital media site tapping into local youth culture, has made history in the city with retail investors seeking more than 6,000 times the number of shares in its initial public offering.
The firm, which is set to debut on the Hong Kong exchange on Wednesday, had set the IPO price at the high end of an indicative price range of between HK$1 and HK$1.20. The total amount it will raise is just HK$81 million (US$10.3 million), but the huge subscription from retail investors has left previous hot IPOs in Hong Kong in the dust.
Previously, Magnum Entertainment, a nightclub operator in Hong Kong, had claimed the crown as the city’s most pursued IPO with an oversubscription of 3,559 times in 2014.
“Hong Kong people are familiar with Most Kwai Chung’s products, such as 100Most magazine and Most TV,” said Alex Wong, director of asset management at Hong Kong-based Ample Capital. “They are well-known brand names.”
Investor enthusiasm for IPOs in Hong Kong in general has been strong in recent weeks, Wong said, but still the huge subscription for Most Kwai Chung, in contrast to the relatively small amount to be raised, seemed “speculative”.