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Punters flock to Li Ning brand

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SCMP Reporter

Shares in sporting goods retailer Li Ning outperformed the market on its first day of trading yesterday after mixed performances from other initial public offerings.

The stock rose as high as $2.45 before settling at $2.35 - 9.3 per cent above its IPO price of $2.15.

It was the third most active counter in terms of trading value, with 183 million shares traded out of 246 million issued.

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'Investors still favoured Chinese consumption stocks as the sector would be the least affected in the current credit tightening environment,' one broker said.

Li Ning was benefiting from its founder's achievements in the world's major sporting events, Kim Eng Securities analyst Joe Wong said in a report.

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But Mr Wong was cautious on the stock, expecting limited upside due to its expensive pricing at 18.3 times prospective earnings on a fully-diluted basis.

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