Shares in Hengli Commercial Properties yesterday surged nearly fivefold after the company became a back-door listing for Dalian Wanda Commercial Properties, one of the largest developers controlled by the nation's third-richest man, Wang Jianlin.
The reverse takeover triggered a buying spree among retail investors and small-cap fund managers, pushing the stock up 465 per cent to finish at a record high HK$1.95.
More than 62.2 million shares worth HK$127.1 million were traded.
"Hengli would become Wanda's overseas fundraising platform and an ATM machine to fulfil Wanda's offshore acquisition ambition," said Alma Yang, a portfolio manager with Shenyin Wanguo Asset Management (Asia).
Wang was ranked third on last year's Forbes China rich list with an estimated net worth of US$8 billion.
Dalian Wanda Commercial Properties is the property arm of his business empire, Dalian Wanda Group.