Galaxy Securities Jumps 6% in Storm-Delayed H.K. DebutStephanie Tong and Benjamin Haas
China Galaxy Securities Co., a brokerage controlled by the country’s sovereign wealth fund, jumped 6 percent at its Hong Kong trading debut today.
Trading was postponed to 1 p.m. after the Hong Kong government issued a “black” rainstorm warning, prompting the stock exchange to cancel its morning session. The shares closed at HK$5.62, up from the issue price of HK$5.30, after rising by as much as 11 percent. That compared with a decline of 0.5 percent in the benchmark Hang Seng Index.
The stock will be added to the FTSE All-World, All-Emerging and China (HK Listed) indexes starting May 29, according to a statement by FTSE today.
Galaxy Securities hired 21 investment banks for its HK$7.65 billion share sale, a record for a Hong Kong initial public offering, according to data compiled by Bloomberg. Founded in January 2007, the Beijing-based company is controlled by Central Huijin Investment Ltd., a unit of China Investment Corp., according to the brokerage’s website.
Cornerstone investors for Galaxy Securities include insurer AIA Group Ltd., with an investment of $50 million, and Khazanah Nasional Bhd, Malaysia’s sovereign wealth fund, with $100 million, the brokerage’s prospectus shows. Cornerstone investors typically agree to hold their stock for six months in return for a guaranteed allocation in an IPO.