STOCK ALERT - Dongyue Group sharply lower vs IPO price in Hong Kong debut |
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Mon, 10 Dec 2007 05:23
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HONG KONG (XFN-ASIA) - Dongyue Group Ltd (189.HK), China's largest environmentally friendly refrigerant maker, fell sharply below its its initial public offering (IPO) price on its first day of trading.At 10:25 am, the stock was at 1.92 hkd, down 0.24 hkd or 8.90 pct from its IPO price of 2.16. It opened at 2.16 and hit a high of 2.17.Dealers said Dongyue's debut was spoiled by a claim against it of intellectual property rights infringement.The company said over the weekend that it received a notice from China Bluestar Group Ltd on Dec 2 -- after the Hong Kong public offer closed -- alleging that Dongyue's silicone business infringed the intellectual property rights of China Bluestar Group.China Bluestar Group claims damages of at least 100 mln yuan.But Dongyue said the claims are unfounded and it is taking legal advice.Dealers said a waning of the frenzy for new listings was also to blame for Dongyue's lackluster first-day performance.The company offered 520 mln shares in the IPO, raising around 1.12 bln hkd to expand its refrigerants, fluoropolymers and liquid alkali business.The retail tranche of the IPO was only five times oversubscribed, compared with the over-subscription multiples of several hundred times for some earlier debutants. It offer price of 2.16 hkd per share was near the low end of the indicated range of 2.05-2.63 hkd.(1 usd = 7.8 hkd)george.ng@xfn.comxfngn/xfjamesaCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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China's Dongyue Group says Hong Kong IPO 5 times subscribed 