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Port firm's debut falls below offer price
By Pan Xiaoyi |
September 29, 2010, Wednesday
|
Print Edition
Print Edition
NINGBO Port Co, operator of the world's second-busiest harbor by total throughput, fell below its offer price on its Shanghai debut yesterday due to lukewarm investor sentiment.
Its sluggish performance may mark the beginning of another round of slack performance by companies that launched initial public offerings.
"It reflected the declining enthusiasm towards IPOs and the sluggish local equity market," said Wu Yan, an analyst at Daton Securities Co. "Investors seeking IPOs may face increasing risks as more shares, especially large chips, may decline on their trading debut in this bearish market."
Ningbo Port fell 3.5 percent to close at 3.57 yuan, versus a 0.63 percent dip in the Shanghai Composite Index. The gauge has fallen 20 percent this year as the government took steps to avert asset bubbles and inflationary risks.
The port operator raised 7.4 billion yuan (US$1.1 billion) in China's sixth-largest IPO this year after it reduced the size of its share sale by 20 percent to 2 billion shares amid a stock market slump and concerns over easing trade volume.
The offer price was 3.7 yuan each, or 29.3 times its earnings in 2009. It will use the funds to build new coal and container berths to tap the rebound in global trade.
Ningbo Port handled 279 million tons of cargo in 2009.
Its sluggish performance may mark the beginning of another round of slack performance by companies that launched initial public offerings.
"It reflected the declining enthusiasm towards IPOs and the sluggish local equity market," said Wu Yan, an analyst at Daton Securities Co. "Investors seeking IPOs may face increasing risks as more shares, especially large chips, may decline on their trading debut in this bearish market."
Ningbo Port fell 3.5 percent to close at 3.57 yuan, versus a 0.63 percent dip in the Shanghai Composite Index. The gauge has fallen 20 percent this year as the government took steps to avert asset bubbles and inflationary risks.
The port operator raised 7.4 billion yuan (US$1.1 billion) in China's sixth-largest IPO this year after it reduced the size of its share sale by 20 percent to 2 billion shares amid a stock market slump and concerns over easing trade volume.
The offer price was 3.7 yuan each, or 29.3 times its earnings in 2009. It will use the funds to build new coal and container berths to tap the rebound in global trade.
Ningbo Port handled 279 million tons of cargo in 2009.
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