BRIEF: Chuangxin Industries shares jump in Hong Kong trading debut
Shares of electrolytic aluminum producer Chuangxin Industries Holdings Ltd. (2788.HK) jumped in their Hong Kong trading debut on Monday, as the company raised HK$5.31 billion ($682 million) by selling 500 million shares at HK$10.99, the upper end of their range.
The stock opened up 38% at HK$15.20, though it gave back some of the gains and was trading at HK$14.51, still up 32%, midway through the Monday afternoon trading session. The portion of the offering for local Hong Kong investors was more than 400 times oversubscribed, while the international portion was about 18 times oversubscribed.
Chuangxin reported revenue of 7.21 billion yuan ($1 billion) for the first five months of this year, up 22.6% year-on-year. But its profit fell 14.4% to 856 million yuan, as it blamed rising raw material prices. The company plans to use about half of the IPO proceeds to expand its overseas production capacity, including building an aluminum electrolysis smelter. Another 40% will go to constructing green energy power stations and purchasing related equipment.
By Doug Young
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