2009-06-26

BaWang 霸王 IPO

Shampoo maker cleans up
Seven brokerages polled by The Standard received margin financing orders of about HK$6.34 billion for BaWang as of yesterday.

The firm is seeking up to HK$1.67 billion in its initial public offering. At least HK$166.6 million is expected to come from local retail investors.

"The retail subscription for BaWang was much hotter than expected, backed by rosy share prices of newly listed companies," said Kingston Lin King- ham of Prudential Brokerage.

The strong response came after shares of China Metal Recycling (0773) surged as much as 29.5 percent yesterday on its trading debut.

It closed at HK$6.32, up 22 percent from its offer price of HK$5.18.

Hing Lee (HK) (0396), which also went public yesterday, soared 39.2 percent to close at HK$1.42 - the best debut performance so far this year.

BaWang's share price is expected to climb at least 20 percent on its first trading day on July 3, said Bright Smart Securities general manager Nelson Chan Kai-fung. Its share price will be set at HK$1.95 to HK$2.38.

BaWang's IPO may be oversubscribed up to 80 times because of strong market sentiment, sources said.

Another candidate, 361 Degrees International, closed its retail book yesterday and its retail tranche was more than nine times oversubscribed with brokers getting margin orders of HK$2.2 billion.

The sportswear brand aims to raise HK$2.18 billion by floating 500 million new shares at HK$3.15 to HK$4.35 each on June 30.
Don't you know there's a bull market going on?

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