Evergreen International Advances 26% on First Day of Trading in Hong Kong
Evergreen International Holdings Ltd. rose 26 percent on its first day of trading in Hong Kong after the Chinese menswear maker’s initial public offering was 1,231 times subscribed.
“Equity managers are scrambling to get exposure to Asia,” said Tey Tze Ming, a market strategist at Saxo Capital Markets Pte in Singapore. “Since the market is doing very well, the IPOs tend to be oversubscribed and a lot of that is driven by the hot flows coming into Asia with so much liquidity awash in the U.S.”
Investor demand for companies tied to economic growth in China is driving more IPOs to Hong Kong, helping companies raise a record $22.4 billion last month, according to data compiled by Bloomberg. China’s gross domestic product is forecast to rise 10 percent in 2010 and 9 percent in 2011.
Evergreen International set its initial public offering price at HK$4.60 per share, the top end of the range, according to the company’s Nov. 3 statement. About 244 million shares changed hands in trading today.
To contact the reporter on this story: Lynn Thomasson in Hong Kong at firstname.lastname@example.org.
To contact the editor responsible for this story: Darren Boey at email@example.com