Shares of Shanghai-based property developer SPG Land (Holdings) rose just 6.07 per cent on their trading debut yesterday, continuing the trend of modest opening-day gains for Hong Kong initial public offerings on the eve of Industrial and Commercial Bank of China's huge share sale.
The stock gained as much as 8.79 per cent to an intraday high of HK$5.20 before closing at HK$5.07.
Shares worth HK$451 million changed hands.
SPG Land priced its 250 million shares on offer at HK$4.78 each, which was near the top end of the indicative range of HK$4.28 to HK$4.90.
DBS Asia Capital was the sponsor, while DBS Asia Capital and Macquarie were the joint bookrunners and joint lead managers in the offering.
The closing price was 13.5 times the developer's forecast earnings this year and at a 32 per cent discount to its net asset value per share.
The performance was below the market's double-digit expectation founded on the overwhelming responses from investors during the initial public offering, said Kenny Tang Sing-hing, associate director at Tung Tai Securities.