Time Watch and PanAsialum see mixed fortunes in launches

Watchmaker Time Watch well-supported but Apple case maker PanAsialum plunges

PUBLISHED : Wednesday, 06 February, 2013, 12:00am
UPDATED : Wednesday, 06 February, 2013, 4:43am

Two mainland companies - a mid-priced watchmaker and a manufacturer of aluminium casings for Apple - saw mixed fortunes on their first day of trading after raising a combined US$265 million from their initial public offerings.

Shares in Time Watch Investments rose 11.9 per cent at one point before finishing at HK$1.38 - 2.2 per cent above the offered price.

The company priced its new shares at the top end of the indicative range, well supported by a large group of retail investors and with a tranche that was oversubscribed 650 times.

Shares in PanAsialum, a Shenzhen-based supplier of aluminium components for Apple's iPhone and iPad, fell 14.3 per cent before closing with a loss of 13.1 per cent at HK$3.59. The stock was priced above the median at HK$4.13.

The undemanding valuation of Time Watch's shares helped weather the market's sharp correction yesterday and the higher earnings offered more comfort to investors, people familiar with the listing said.

With slowing demand for Apple products, PanAsialum failed to capture the best timing for an initial public offering, leading to a poor first day trading, they said. The company sells casings to Taiwanese-based Foxconn, the largest contract manufacturer for Apple products.

The city's benchmark Hang Seng Index dropped the most since November on renewed concerns about the European debt crisis and a plan by Sinopec, Asia's biggest oil refiner, to raise HK$24 billion in its biggest share sale since listing in 2000. Shares in Chinalco Mining Corp International, which is developing a copper mine in Peru, tumbled on their trading debut last Wednesday, 6 per cent lower than their offered price, reflecting poor demand for commodity stocks.

As political fears in Europe resurface, investors may start cashing out before the Lunar New Year after a strong run since late last year.

Political storms in Spain and a banking scandal in Italy sparked renewed worries. The Spanish benchmark 10-year bond yield rose 23 basis points to 5.44 per cent on Monday, the highest since mid-December, while the Italian stock market dropped 4.5 per cent, dragged down by the troubled banking sector.