Citic Pacific spin-off DCH bucks trend to close flat on debut

Dah Chong Hong Holdings, a unit spun off by Citic Pacific, made a disappointing debut on the Hong Kong stock exchange yesterday with its HK$4.6 billion initial public offering.

The stock bucked recent stellar performances of other listings, staying flat on the first trading day.

As much as HK$1.82 billion worth of shares changed hands as the stock advanced as high as 2.7 per cent before declining to close at its offer price of HK$5.88.

The offer price was set at the top of an indicative range, representing 26 times this year's forecast earnings.

The lukewarm debut came after strong demand in the grey market, when the shares rose as much as 27.2 per cent over the offer price.

'The firm is not a pure China consumer play, so some investors may keep away from the stock,' said Chan Yuk-keung, a fund manager at Philip Asset Management.