SHARES in Luen Fat Hong International Holdings gained 17.18 per cent from the issue price of $1.28 on its Stock Exchange of Hong Kong debut yesterday amid a better performance by the stock market.
The shares of the plastic products maker closed at the day's high of $1.50 after trading as low as $1.36.
A broker at a Japanese securities house said: 'Its performance was in line with improved market sentiment.' There were 44.39 million shares worth $64 million traded.
Tai Fook Securities research manager Elton Cheung said: 'Anticipation of stable earnings growth for the industry due to underlying demand for PVC products also convinced investors to buy the shares.' Issuing 75 million new shares, or 25 per cent of its issued share capital, the China-based company aimed to raise $96 million before expenses.
About $54 million is to be pumped into expansion projects, of which $26 million is for funding two new production lines.
Chairman Wong Chak-ming said the new production lines in Beijing and Chendu were undergoing final trials.
