Internet fervour swept up property developer Dong-Jun Holdings yesterday, as its shares rocketed 90.52 per cent on the back of a $49.92 million purchase of an effective 4 per cent stake in a mainland Web-site company for children.
The transaction values the Chinakids Web-site joint venture at $1.09 billion, setting new boundaries for the pricing of Internet-based businesses with mainland links.
Brokers were surprised by Dong-Jun's share price movement on the back of the purchase of such a small stake in the Web site.
'They took a small minority stake in a China Internet company which almost doubled their market capitalisation in one day,' Tai Fook Securities sales director Andrew To Koon-hung said.
'That's absolutely ridiculous.' He predicted the stock to fall on profit-taking in the next few days.
For Dong-Jun, which operates in the mainland, the deal was a step towards building 'cyber-properties', where Internet connections and content would be provided to units in the company's properties, a company executive said.