2593.HK

Shares of health and beauty products manufacturer Herbs Generation Group Holdings Ltd. (2593.HK) surged in their Hong Kong trading debut on Thursday, opening 25% above their IPO price of HK$3.75. The stock later gave back some of those gains, but was still up 16% at HK$4.35 in afternoon trading.

Founded by well-known Hong Kong artist Kwok Chun On and his sister Kwok Chi Yan, Herbs sold approximately 33.33 million shares and raised HK$125 million ($16 million) from the listing. The listing was oversubscribed by 6,083 times, making it the most sought-after IPO this year in terms of subscribers.

The company said that 35.7% of the net proceeds will be used for strategic marketing and promotion, and approximately 38% will be used to expand, improve and optimize its sales network.

By Lau Chi Hang

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