Chery, China’s No 2 carmaker, soars in Hong Kong debut after US$1.2 billion IPO
The stock has jumped nearly 14 per cent before retreating due to profit-taking
Trading under the stock code 9973, Chery’s shares opened at HK$34.20, an increase of 11 per cent from the offer price of HK$30.75, which was set at the top end of the marketed range.
The buying momentum propelled the price to a peak of HK$34.98 before it ended the day at HK$31.92.
Due to Super Typhoon Ragasa, which led to flight cancellations and business disruptions, Chery called off its Thursday listing ceremony at the Hong Kong stock exchange. The event was moved to Wuhu, the city in central China’s Anhui province where the company was founded in 1997.
Chery sold 297.4 million shares in its primary listing, with about 90 per cent allocated to international investors and the remainder offered to Hong Kong’s retail investors.
An over-allocation option allowed for the issuance of an additional 44.61 million shares, potentially increasing the deal size to US$1.35 billion, making it the largest automotive IPO in Hong Kong this year.