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Chinese language bottled water large Nongfu Spring soars in Hong Kong debut – Information by Automobilnews.eu

Chinese language bottled water large Nongfu Spring soars in Hong Kong debut


Nongfu Spring’s bottled water in a grocery store in Hangzhou, China.

Costfoto | Barcroft Media | Getty Photos

SINGAPORE — Shares of Chinese language bottled water large Nongfu Spring surged greater than 85% of their debut on the Hong Kong inventory market on Tuesday. 

The inventory opened at 39.80 Hong Kong {dollars} per share ($5.14) earlier than inching all the way down to round 35.00 Hong Kong {dollars} ($4.52). Its preliminary public providing worth was 21.50 Hong Kong {dollars} ($2.77), permitting the corporate to boost round $1.1 billion. 

Dickie Wong, government director of Kingston Securities, informed CNBC’s “Squawk Field Asia” that Nongfu Spring was “one of many hottest IPO ever” within the historical past of Hong Kong’s inventory market. He identified that the IPO was oversubscribed by 1,148 occasions.

Wong defined that buyers have an interest within the inventory not just for its “fundamentals or its very excessive revenue margin.” He added that there was a basic lack of funding alternative on condition that valuations of many shares — particularly know-how or web firms — are excessive.

“So buyers suppose (collaborating) in a brand new IPO is all the time the perfect technique,” he stated. 

Nongfu Spring bought 388.2 million shares in its IPO deal. Its cornerstone buyers embody fund supervisor Constancy, hedge fund Coatue and Singapore sovereign wealth fund GIC. Its IPO is likely one of the largest in Hong Kong this 12 months.

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Chinese language bottled water large Nongfu Spring soars in Hong Kong debut – Information by Automobilnews.eu
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