Hello Pezz, <<Risk>> ... what is that?
I have booted up my HK share trading program and have cyber-lifted mucho troops freed from the recent engagement in China Life Battle Message 19619729 and Message 19620430 to engage in a lightening raid of finance.yahoo.com ... what, you have never heard of it?
LTBH for this will be a few minutes or hours. Got to go, for it is a few minutes to SHOW TIME !
search.ft.com
Zijin Mining's IPO 744 times oversubscribed
By Justine Lau in Hong Kong
FT.com site; Dec 22, 2003
The speculative frenzy surrounding mainland Chinese listings in Hong Kong hit a new high on Monday after gold miner Fujian Zijin Mining Industry, a little-known gold miner, said the retail portion of its HK$1.15bn ($147m) initial public offering was 744 times oversubscribed.
The figure represents a new record for Hong Kong’s H-shares - mainland incorporated companies listed in the territory and makes Zijin the hottest listing in the territory since 1997.
The demand for Zijin, which means purple gold in Chinese, surpassed the recent IPO by vehicle maker Great Wall Automobile which saw its retail offering 683 times subscribed. It also exceeds the demand billionaire Li Ka-shing's internet company Tom.com enjoyed in 2000, when investors clamored for 669 times the amount of shares on offer.
However, the level of interest has yet to reach the record levels reached in 1997 by Hong Kong’s “red chips” - stocks incorporated outside China but which have most of their assets there. In 1997, Beijing Enterprises Holdings, the investment arm of the mainland capital’s municipal government, reached a record 1,276 times oversubscription levels during its IPO.
Even large Chinese IPOs have drawn huge interest from retail punters in recent months. The retail portion of the $3.5bn IPO this month of China Life, the mainland’s biggest insurer, was 172 times oversubscribed.
The strong interest in Chinese IPOs has stoked concerns the market may have peaked. The index of Hong Kong's H-share index has more than doubled this year, while the broader market has only risen 34 per cent.
"It is definitely overheated mainly due to the abundant liquidity. But I wouldn't say it is a bubble yet as these companies do have track records, unlike those during the dotcom period," said Ben Kwong, director of brokerage KGI Asia in Hong Kong.
Lawrence Ang, a China analyst at Deutsche Bank in Hong Kong, said the offerings were being priced at the high end, at an average of between 15 and 18 times earnings. But this was on par with existing China-related stocks, which were trading at about 16 times.
He said demand of the companies stemmed partly from fundamental factors, such as China’s strong macroeconomic growth and, in Zijin’s case, high gold prices.
“But after their big day-one jumps, many of them are overvalued,” Mr Ang said.
Due to the overwhelming response, Zijin priced its IPO at the top end of its range at HK$3.3 a share and raised the allocation of its retail tranche from 10 per cent to 50 per cent. The company said the tranche of shares for institutional investors was 21.2 times oversubscribed.
Shares of Zijin will begin trading in Hong Kong on Tuesday. |
