Ninebot’s depositary receipts, China’s version of ADRs, double on Shanghai’s Star Market debut
- Chinese depositary receipts of smart scooter maker Ninebot surge in early trading on Shanghai’s Star Market board for technology companies
- Ninebot, partly-owned by Xiaomi, has not made any profit before its US$198 million offering
Ninebot’s Chinese depositary receipts (CDRs) surged 103 per cent to 38.5 yuan on the Star Market at the closing of trading on Thursday. About 1.6 billion yuan (US$238.6 million) worth of the securities changed hands. There is no limit on how much prices can rise or fall on the exchange’s technology board, compared with a 44 per cent cap for the upside on its main board.
China allowed the Ninebot, a smart-scooter maker and owner of Segway, to issue the first-ever CDRs in September, a culmination of years of efforts to broaden the onshore capital market along the liberalisation, or gaige kaifang , initiated by the late paramount leader Deng Xiaoping in 1978.
“Ninebot has an edge over products and channels and its sales are expected to grow fast soon,” said Dong Ruibin, an analyst at China Merchants Securities. “Smart tools for short-distance transport dovetail with China’s policy on energy saving and emission reduction.”
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Ant Group poised to be world’s biggest private firm making public debut, with Hong Kong-Shanghai IPO
The feat is a precursor to yet another historic milestone as Ant Group, owner of China’s largest online-payment system Alipay, unveiled the world’s biggest-ever stock offering on the way to its debut on the Star Market and Hong Kong on November 5.