BRIEF: Breton shares surge in Hong Kong trading debut
Shares of motor manufacturer Breton Technology Co. Ltd. (1333.HK) opened at HK$29 in their Hong Kong trading debut on Wednesday, up 61% from their IPO price of HK$18. The stock held on to most of the gains during the morning session, closing up 49% at HK$26.85 at the midday break.
The company issued 13 million shares, raising HK$234 million ($30 million). The portion of the offering for local Hong Kong investors was massively oversubscribed by 198 times, but the international placement failed to be fully subscribed.
The company plans to spend 40% of the proceeds for technology investment and new product development, another 40% for factory construction and machinery procurement, 10% for expansion of its sales network and the remainder for general operating expenses.
By Lau Chi Hang
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