China Railway Construction shares up 16 pct in HK debut
Shares in China Railway Construction Corp <1186.hk>, which built the world's highest railroad, rose 16 percent in their Hong Kong debut on Thursday, in line with expectations, after the firm raised a combined $5.4 billion in a Hong Kong and Shanghai initial public offering.
Shares in China Railway Construction were set at HK$12.40 in pre-open trade, compared with a Hong Kong IPO price of HK$10.70, which had been at the top of an indicated range.
In grey market action on Wednesday, the stock traded at HK$12.10 on the Instinet platform, while it traded at HK$12.64 -- a gain of 18 percent, on another grey market platform, according to the Hong Kong Economic Times.
China Railway Construction's <601186.ss> Shanghai shares rose 28 percent in their trading debut on Monday, compared with their IPO price of 9.08 yuan. The stock closed at 12.00 yuan on Wednesday in Shanghai, 32 percent above its IPO price.
The company, builder of the Qinghai-Tibet railway, the world's highest, raised 22.246 billion yuan ($3.1 billion) in mainland China's 11th-biggest IPO.
It raised $2.3 billion from its Hong Kong offering, generating orders worth HK$534.8 billion (US$68.6 billion) from local retail investors alone to rank as the most popular IPO ever among individuals in the city.
Hong Kong's benchmark Hang Seng Index <.HSI> has dropped nearly 16 percent so far this year, after jumping 39 percent last year, amid global financial turmoil.
China CITIC Securities <600030.ss> sponsored both the Shanghai and Hong Kong portions of the offering, while Citigroup
(US$1=HK$7.8)
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