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Saturday 3 October 2009
Glorious Property falls on debut
Mainland property developer Glorious Property Holdings fell 20 per cent in its debut on Friday, dented by a Wall Street sell-off and a dwindling appetite for newly-listed stocks amid a flurry of new offerings.
Mainland property developer Glorious Property Holdings fell 20 per cent in its debut on Friday, dented by a Wall Street sell-off and a dwindling appetite for newly-listed stocks amid a flurry of new offerings.
Glorious Property, which raised US$1.28 billion in the city’s third-largest initial public offering this year, closed the day at HK$3.76. after hitting a low of HK$3.53 shortly after the market opened, against an issue price of HK$4.40 per share.
“This is a mid-sized Chinese property company and has no special selling point,” said Andrew To, sales director of Tai Fook Securities. “The sharp fall on Wall Street overnight also hit sentiment and many Chinese property stocks are weak today.”
The Dow Jones slipped 2.1 per cent on Thursday in its worst one-day fall in three month, as economic reports fuelled fears about the strength of the global economic recovery.
Glorious Property’s lacklustre debut comes as a string of other new IPOs in Hong Kong have also fared poorly.
China South City marked the worst trading debut in Hong Kong this year by falling about 23 per cent on Wednesday, and extended losses by retreating 3.7 per cent on Friday.
Financial markets in Hong Kong were closed on Thursday for the National Day holiday.
Several other IPOs have made weak debuts in Hong Kong, including a 17 per cent drop for sports shoe maker Peak Sport Products on Tuesday, signalling a waning appetite among investors for IPOs.
But companies with a unique market or selling point, including Las Vegas casino company Wynn Resorts, should still be able to attract buyers in the secondary market for the upcoming listing of its Macau assets in Wynn Macau, due to make its trading debut on October 9.
“Wynn is the first gaming stock to list in Hong Kong that is controlled by a foreign company and Macau is just its first leg to diversify into Asia,” To said.
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Glorious Property falls on debut
Reuters in Hong Kong
02 October 2009
Mainland property developer Glorious Property Holdings fell 20 per cent in its debut on Friday, dented by a Wall Street sell-off and a dwindling appetite for newly-listed stocks amid a flurry of new offerings.
Glorious Property, which raised US$1.28 billion in the city’s third-largest initial public offering this year, closed the day at HK$3.76. after hitting a low of HK$3.53 shortly after the market opened, against an issue price of HK$4.40 per share.
“This is a mid-sized Chinese property company and has no special selling point,” said Andrew To, sales director of Tai Fook Securities. “The sharp fall on Wall Street overnight also hit sentiment and many Chinese property stocks are weak today.”
The Dow Jones slipped 2.1 per cent on Thursday in its worst one-day fall in three month, as economic reports fuelled fears about the strength of the global economic recovery.
Glorious Property’s lacklustre debut comes as a string of other new IPOs in Hong Kong have also fared poorly.
China South City marked the worst trading debut in Hong Kong this year by falling about 23 per cent on Wednesday, and extended losses by retreating 3.7 per cent on Friday.
Financial markets in Hong Kong were closed on Thursday for the National Day holiday.
Several other IPOs have made weak debuts in Hong Kong, including a 17 per cent drop for sports shoe maker Peak Sport Products on Tuesday, signalling a waning appetite among investors for IPOs.
But companies with a unique market or selling point, including Las Vegas casino company Wynn Resorts, should still be able to attract buyers in the secondary market for the upcoming listing of its Macau assets in Wynn Macau, due to make its trading debut on October 9.
“Wynn is the first gaming stock to list in Hong Kong that is controlled by a foreign company and Macau is just its first leg to diversify into Asia,” To said.
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