Update | Tencent-backed Yixin, Hong Kong’s 10th hottest IPO, disappoints in debut
But the online car retailer’s CEO believes Yixin’s flotation can help Hong Kong achieve its ambition of becoming a tech IPO hub
Shares of Yixin Group, China’s biggest online car retailer, had surrendered most of their early gains by Thursday’s close in Hong Kong, disappointing market watchers who had anticipated a blockbuster debut.
The company, which is backed by Tencent and JD.com, raised HK$6.77 billion (US$870 million) by selling 879 million shares in its IPO,the third largest in terms of funds raised by an internet business in the city this year. Yixin priced the shares at HK$7.7 apiece, the top end of an indicative range of HK$6.6 to HK$7.7, as investors eye the rapid rise of vehicle e-commerce clamoured to get their hands on the stock.
The retail portion of the IPO was 560 times oversubscribed, attracting HK$382 billion of investor capital, making it the 10th most sought-after IPO in the city’s history.
Hopes were high as the stock got off to a thunderous start on Thursday morning, opening at HK$10 and jumping as much as 32 per cent to HK$10.18.
But it had trimmed those gains to 5 per cent by the end of the session, closing at HK$8.12. That price gives Yixin a market capitalisation of HK$51 billion.
