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. SPG Land's share sale was 88 times oversubscribed for its retail portion and 20 times for its institutional tranche. 'The trading debut of SPG Land followed the modest gains of the recent IPOs,' said Mr Tang. Making its debut on Wednesday last week, Shanghai developer Shui On Land rose 10.28 per cent while metals trader Lee Kee Holdings advanced 7.87 per cent. Shares of HannStar Board International Holdings, a maker of printed circuit boards for notebook computers, gained only 2.82 per cent on Friday, their first day of trading. 'Therefore, investors are inclined to take profits in the debut, cashing out in preparation for ICBC's mega-IPO,' said Mr Tang. ICBC, the largest commercial lender in China by assets, loans and deposits, on Monday began selling 35.4 billion H shares or 10.8 per cent of its enlarged share capital to global institutional investors, aiming to raise a record US$19 billion in the first dual Hong Kong and Shanghai share sale. Wang Weixian, founder and chairman of SPG Land, said at the listing ceremony yesterday that he expected earnings from its hotel business would make up about 30 per cent of the company's overall earnings within five years. The property developer generated more than 95 per cent of its revenue from selling residential properties in Shanghai last year. It has three hotel projects on hand, namely The Peninsula Shanghai, a joint venture with Hongkong and Shanghai Hotels; Holiday Inn, a suburban Shanghai project managed by InterContinental Hotels Group; and Huangshan Taipinghu Resort in Anhui province. All three hotels are expected to start operations in 2009.