CMOC gains 59pc in sizzling start
Shares of China Molybdenum Co (CMOC) rose as much as 65.88 per cent on their debut yesterday, as investors continued to chase new offerings amid ample market liquidity.
The stock opened at a high of HK$11.28, then slid back to close at HK$10.82 - 59.12 per cent higher than the initial offering price of HK$6.80.
About HK$7.44 billion worth of CMOC shares changed hands, 2.65 times more than the trading turnover of HSBC Holdings.
An investor who obtained one lot of 1,000 shares could make a profit of HK$4,020 at the closing price.
The strong demand for shares in CMOC, the country's largest producer of the steel-hardening metal, come less than a week after the 35.13 per cent first-day gain by Country Garden Holdings, a Guangdong property developer, and sets a tough target for China Citic Bank Corp on its debut today.
Citic Bank's US$5.4 billion simultaneous offerings in Hong Kong and Shanghai are expected to deliver a moderate return for investors.
Brokers said the shares were trading in the grey market at HK$7 to HK$7.17, a 19.45 to 22.35 per cent premium to the lender's offer price of HK$5.86.
About HK$44 million worth of Citic Bank shares was traded at the pre-opening session.
Eight strategic investors who acquired 4.4 per cent stakes in CMOC for US$160 million before the global offering could book a HK$739 million paper gain. They are committed to holding the shares for 12 months after the share sale.
The investors include New World Development chairman Cheung Yu-tung and Henderson Land Development chairman Lee Shau-kee, as well as corporates Citic Pacific and China Life Insurance.
More than 694,000 retail investors subscribed for about 399 times the number of shares earmarked for them. The offering tied up HK$296 billion in funds.
Chairman Duan Yuxian said the company had no plans to list separately in the mainland but hoped to complete acquisitions within a year to increase its presence in the sector.
8 cornerstone investors who bought US$20m stakes in China Molybdenum, yesterday each made paper gains of HK$92m
Cheung Kong and Li Ka-shing
David Li Kwok-po
China Life Insurance
Government of Singapore Investment Corp