Hong Kong jeweller, data-provider listing debuts give market whiff of optimism
- Laopu Gold’s shares surged 86.7 per cent to the day’s high while Tianju Dihe’s shares jumped as much as 40.6 per cent from their respective IPO prices
Strong debuts by a jewellery retailer and a data services provider on the Hong Kong stock exchange have brought cheer to the new issue market, as the city looks to restore its glorious past when it was the world’s top IPO destination for seven of the past 15 years.
Laopu Gold’s shares surged as much as 86.7 per cent, before surrendering gains to close 73 per cent higher from its offer price of HK$40.5 on its first day of trading on Friday, making it one of the best listing day performances this year, Bloomberg data shows. It raised HK$905.94 million via its IPO, which was 582 times oversubscribed among local investors, according to a filing.
Tianju Dihe, an information company which has e-commerce giant JD.com as an early backer, saw its shares jump as much as 40.7 per cent from its IPO price of HK$83.33. The stock, however closed sharply lower at HK$60.15. It raked in HK$401.5 million after its IPO was oversubscribed 602 times, a filing showed.
The broader Hong Kong market ended flat. Both deals were solely sponsored by Citic Securities.
“The appetite for IPOs is recovering, and I think there’s a chance for sentiment to return to 2020 levels before Ant Group’s IPO cancellation,” said George Au, deputy sales director at Phillip Securities. Better IPO share performances have been encouraging more investors to look at this market, while the FINI scheme is also helping demand, he added.