Hong Kong gets a ‘magnificent seven’ moment as stock exchange has busiest listing day in 18 months
- Seven companies ranging from hit TV serial production house to furniture maker start trading as fundraising momentum builds
- HKEX has not seen more IPO listings in a single day since July 2018 amid rush before Lunar New Year
The Hong Kong stock exchange greeted its busiest day in 18 months for new listings, with seven companies making their trading debuts, as the city enjoys a respite from social unrest in recent weeks.
The number of listings is the most since eight companies began trading on July 12, 2018, according to exchange data. The raft of stock offerings in the new year underscores the confidence in Asia’s third largest capital market in the face of economic challenges brought on by months of anti-government protests.
Several dozen executives, bankers, accountants and lawyers involved in the seven IPOs gathered at the exchange’s trading hall to witness the customary listing ceremony.
The first trading day is typically highlighted by the sounding of a ceremonial gong in the hall. The seven, however, had to share the honour with only four gongs in the hall.
The seven companies, ranging from producer of hit TV series to furniture maker and events organiser, raised a combined HK$2.65 billion (US$341 million) from their share sales, according to exchange data.
Not all are having a magnificent outing, though. Shares of three companies, Values Cultural Investment, Shanghai Gench Education Group and Huijing Holdings gained at the close of trading. Four others Activation Group, Sanvo Fine Chemicals, QP Group and Kwung’s Holdings fell below their IPO levels.
Values Cultural rose the most, to HK$0.70 for a 40 per cent gain above its IPO price of HK$0.50, while Shanghai Gench climbed 13 per cent to HK$6.81 and Huijing added 1 per cent to HK$1.95.