FIRST Sign International Holdings, which distributes Montagut fashion products in Hong Kong, China and Macau, has made a disappointing debut on the stock market. The new issue yesterday fell 15 per cent from its issue price of $1 to close at 85 cents. Samuel Lau, of China Everbright Securities, said the plunge was partly because of the company's large share offering and a lower than expected subscription rate. First Sign issued 294.3 million shares with warrants of one-for-five shares attached. The public portion of the issue was 3.3 times oversubscribed, well-below expectations of more than seven times. South China Brokerage director Howard Gorges said: 'I don't think it was well enough known to raise $300 million, which is quite pricey. 'I think the underwriters overestimated the market demand.' The shares traded for between 82 cents and $1. About 59.14 million shares, worth $54.01 million, were traded, making the new issue the most-traded stock of the day in terms of volume. Short-term speculators had planned to take profits on the stock's debut, but they turned out to be stop-loss sellers instead, a sales manager said. An analyst advised a stag of the new share, because of First Sign's heavy reliance on Montagut. Sales of Montagut products accounted for about 89 per cent of the company's turnover in the past fiscal year to June. 'It is said that Chaifa Holdings, sole manufacturer and distributor of Playboy, will soon launch new knitwear products under Playboy's brand name in China. This will be a further challenge to First Sign,' the analyst said.