Demand propels debutant over 3-folds
By Vera Ye |
October 10, 2012, Wednesday
|
Print Edition
Print Edition
SPECULATIVE demand may have propelled China Molybdenum Co, the country's second largest producer of the metal, to jump over three-folds on its debut in Shanghai yesterday as the stock's issue price was lower than the indicative range.
Its shares surged by 221 percent to settle at 9.63 yuan, more than tripling its offer price of 3 yuan, which is far below an indicative price range of 5.85 yuan to 7.95 yuan, according to Dongxing Securities.
The lower issue price fueled speculative demand for the stock, said Zhang Fang, an analyst at the brokerage. At one point trading in the stock was halted for nearly one and a half hours as the trading volume reached 80 percent of the company's total capital stock.
The company had earlier cut its offering size from up to 542 million shares to the current 200 million shares while slashing the fund-raising target to 600 million yuan from 3.65 billion yuan previously.
The company's share price in Hong Kong also jumped as much as 4 percent before it closed slightly lower at HK$3.46 (45 US cents).
Its shares surged by 221 percent to settle at 9.63 yuan, more than tripling its offer price of 3 yuan, which is far below an indicative price range of 5.85 yuan to 7.95 yuan, according to Dongxing Securities.
The lower issue price fueled speculative demand for the stock, said Zhang Fang, an analyst at the brokerage. At one point trading in the stock was halted for nearly one and a half hours as the trading volume reached 80 percent of the company's total capital stock.
The company had earlier cut its offering size from up to 542 million shares to the current 200 million shares while slashing the fund-raising target to 600 million yuan from 3.65 billion yuan previously.
The company's share price in Hong Kong also jumped as much as 4 percent before it closed slightly lower at HK$3.46 (45 US cents).
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