GF Securities shares surge in grey market
Shares in mainland brokerage GF Securities soared in the grey market before their debut on the Hong Kong stock exchange today, thanks to the bull run in the stock markets.
Shares in mainland brokerage GF Securities soared in the grey market before their debut on the Hong Kong stock exchange today, thanks to the bull run in the stock markets.
The stock jumped more than 37 per cent above its offer price of HK$18.85, according to Phillip Securities.
The Hong Kong share sale was priced at a 50 per cent discount to the broker's Shenzhen-traded shares, which have surged 200 per cent in the past year.
A jump in a company's stock price in the grey market indicates a potentially strong debut.
GF's US$3.6 billion initial public offering comes as the market is bolstered by strong inflows from mainland investors seeking bargain deals, pushing Hong Kong's market turnover to record highs.
The Hong Kong tranche of the deal was 180 times oversubscribed after the company pre-sold about US$1.9 billion worth of shares to 17 cornerstone investors who agreed to commit to a certain percentage of the offering with a lock-up period.
GF's mainland peers Citic Securities and Haitong Securities have raised more than US$8.4 billion in placements, boosting their ambitions in the margin lending business, which caters mainly to retail investors.
GF plans to use the proceeds to expand its margin financing, securities lending and investment banking businesses.
The flotation is Asia's biggest this year, surpassing Jasmine Broadband Internet Infrastructure Fund's US$1.7 billion listing in Thailand in February, according to data provider Dealogic.
Rivals Huatai Securities and Guolian Securities have submitted applications to list in Hong Kong, hoping to raise a combined US$3 billion.
