BRIEF: CNGR falls in trading debut after weak pricing

Shares of new energy materials producer CNGR Advanced Materials Co. Ltd. (2579.HK) opened flat in their Hong Kong trading debut on Monday, and then fell during the morning session to close down 5% at HK$32.30 by the midday break.

The company sold 104 million shares for HK$34 apiece, representing the bottom of their range, raising net proceeds of HK$3.43 billion ($440 million). The public portion of the offering for local Hong Kong investors was 26.9 times oversubscribed, while the international tranche was 3.08 times oversubscribed.

CNGR’s revenue rose 17.4% to 40.2 billion yuan ($5.66 billion) last year, but its profit fell 24.7% to 1.47 billion yuan. Its revenue growth slowed to 6.1% year-on-year in the first half of this year, reaching 21.32 billion yuan, while its profit for the period declined 14.8% to 753 million yuan.

The company plans to use 50% of the IPO proceeds to expand its production and supply chain capacity, while 40% will go to develop new energy battery materials and advance digitalization initiatives. The remaining 10% will be used for general working capital.

By Lau Chi Hang

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