Hotel operator and developer Kosmopolito Hotels International, which owns and operates Lan Kwai Fong Hotel in Central, yesterday had a disappointing trading debut along with two other companies that listed in Hong Kong the same day.
Kosmopolito fell 14.6 per cent below its offer price of HK$2.20, closing at HK$1.88. The company, a spin-off of developer Far East Consortium International, said in a statement earlier it had raised HK$1.12 billion and that it would use the money to fund new developments on the mainland.
Although the Hong Kong IPO market is heating up, with a raft of companies waiting to go public, the first-day performances have not been impressive. Apart from Kosmopolito, the two other companies that made their debuts on the Hong Kong stock exchange yesterday also failed to shine.
Shares in mainland coking coal logistics company Winsway Coking Coal Holdings fell 8.7 per cent from the offer price of HK$3.70, closing at HK$3.38.
Winsway, whose principal business is carrying coal from Mongolia to China, had raised HK$3.48 billion to fund an expansion of its facilities along the Mongolia-China border to process, store and load coal.
Before its listing, Winsway had received total investments of US$120 million from private equity fund Hopu Investment Management, base metals trader China Minmetals Corp, investment company Silver Grant, and Itochu, one of Japan's largest diversified trading houses.
Great Harvest Maeta Group Holdings, the other company making its debut yesterday, closed just 3.54 per cent above its offer price of HK$1.13.