Lumena Resources Corp rose in its trading debut yesterday, bucking the slide in the Hang Seng Index, as investors loaded up on shares of the newly listed company because of its steady business and attractive pricing.
The mainland producer of the mineral thenardite surged 19 per cent to HK$2.38 from its issue price of HK$2. The first-day percentage advance was the most among this year's initial public offerings.
'Lumena's business is actually a very stable margin business,' said Danny Yan, an assistant director at Taifook Asset Management. 'So if people are focusing back on value, this stock is very attractive at this level.'
There have been nine flotations so far this year and two listings by way of introduction, according to data from the stock exchange. Asia Cassava Resources Holdings and China Singyes Solar Technologies Holdings had the next best trading debuts this year, gaining 17.65 and 12.38 per cent respectively.
361 Degrees International, a mainland sportswear retailer, is set to start trading in Hong Kong at the end of the month. Shampoo manufacturer Bawang International (Group) Holding may list early next month.