20.7 C
New York
Thursday, June 24, 2021

Nongfu Spring Soars in Hong Kong’s Largest IPO in 2020

Must read

Market Movers: Why RIL shares ended in the red despite green energy plans

Shares of the index major had rallied substantially in the run-up to Thursday’s AGM in anticipation of major announcements such as the ones made...

RBI issues guidelines for NBFCs on dividend distribution

The guidelines shall be effective for declaration of dividend from the profits of the financial year ending March 31, 2022 and onwards. These will...

160% jump in a year! Emami flies high after share pledges drop

The counter has been in high spirits on the back of multiple tailwinds such as price hikes, robust earnings, reduction of pledged shares and...
imageStock Markets31 minutes ago (Sep 08, 2020 01:13AM ET)

(C) Reuters.

By Gina Lee

Investing.com – Hangzhou-based Nongfu Spring (HK:9633) made a memorable debut on the Hong Kong Stock Exchange (HKSE), with shares surging as much as 85% in the city’s largest IPO this year.

The shares opened at HK$39.89 ($5.14) per share on Tuesday, before settling at HK$33.30 as of 13:09 AM ET (6:09 AM GMT).

Nongfu offered 388.2 million shares at HK$21.50 each and will use the HK$8.35 billion ($1.08 billion) in proceeds raised to fund company growth. A HKSE filing showed that retail shares were overbought by a record 1,147 times, raking in HK$677 billion (US$87 billion) for the company. Cornerstone investors included Fidelity, Coatue and Singapore’s GIC.

Nongfu Spring was “one of the hottest IPO ever” in the history of Hong Kong’s stock market, Kingston Securities executive director Dickie Wong told CNBC.

Investors are interested in the stock not only for its “fundamentals or its very high profit margin”. But there is a general lack of investment opportunity, given that valuations of stocks such as technology or internet companies remain high. “So, investors think (participating) in a new IPO is always the best strategy,” he added.

The company sells packaged drinks including coffee, tea and fruit juices, in addition to its signature product of bottled water. The company took the largest share in China’s packaged drinking water market from 2012 to 2019, according to a Frost and Sullivan report.

Nongfu Spring Soars in Hong Kong’s Largest IPO in 2020

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

- Advertisement -

Latest article

Market Movers: Why RIL shares ended in the red despite green energy plans

Shares of the index major had rallied substantially in the run-up to Thursday’s AGM in anticipation of major announcements such as the ones made...

RBI issues guidelines for NBFCs on dividend distribution

The guidelines shall be effective for declaration of dividend from the profits of the financial year ending March 31, 2022 and onwards. These will...

160% jump in a year! Emami flies high after share pledges drop

The counter has been in high spirits on the back of multiple tailwinds such as price hikes, robust earnings, reduction of pledged shares and...