BRIEF: RongTa surges in Hong Kong trading debut
Automatic identification and data capture (AIDC) solutions provider RongTa Technology (Xiamen) Group Co. Ltd. (9881.HK) surged on its Hong Kong trading debut on Tuesday, opening at HK$16.60, up 66% from its IPO price. It later gave back some of those gains but was still up 37.8% at HK$13.78 by the midday break.
RongTa Tech offered 18.4 million shares globally, pricing the stock at HK$10, representing the lower end of its indicative range, to raise net proceeds of HK$131.2 million ($17 million). The portion of the offering for local Hong Kong investors was oversubscribed by nearly 275 times. The international tranche was only 0.96 times subscribed, triggering a reallocation mechanism that increased the Hong Kong public offering portion from 10% to 13.2%.
Founded in 2010 and headquartered in Xiamen, capital of South China’s Fujian province, RongTa designs and makes printing equipment, weighing scales, POS terminals and PDAs. The company recorded revenue of 350 million yuan last year, primarily from sales of printing equipment, and a net profit of 41.35 million yuan.
By Lee Shih Ta
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