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Lung Kee share price doubles

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SHAREHOLDERS in Lung Kee (Bermuda) Holdings nearly doubled their money on the company's first day of trade yesterday.

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The company, a maker of moulds used in the manufacture of plastic, saw its shares close at $2.40, against the issue price of $1.21.

The company offered no bonus warrants, so shareholders had a first-day paper profit of 98.3 per cent, helped by the buoyant market mood.

The shares were heavily traded, with 43.2 million changing hands against the 50 million issued.

Turnover was $93.3 million, the day's ninth highest.

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The company's share issue was 310.6 times oversubscribed. Of the net proceeds of $53 million, $15 million will be used to extend its production facilities in Dongguan, Guangdong, and $25 million will go towards new plant and machinery.

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