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Jilin Qifeng gets few orders as IPO fever cools

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Investor appetite for new public share offerings has tapered off dramatically with the latest, Jilin Qifeng Chemical Fibre, attracting just a handful of orders from five brokerages on its first day.

Neither Celestial Asia Securities nor Prudential Brokerage attracted orders yesterday.

Phillip Securities said two orders worth a total of $80,000 were received and Sun Hung Kai Securities said two to three orders for a minimal amount were reported.

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KGI Asia director Ben Kwong said no margin financing products for the stock had been launched on the market yet.

'The sentiment towards new offerings is completely different compared with a few weeks ago,' said Horace Kwan, an executive director of Celestial Asia. 'A bumpy stock market has dulled punter enthusiasm.'

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The brokerage offered margin financing at an annual interest rate of 6 per cent.

Mr Kwan said he was not surprised by the weak response given the market conditions.

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