FAST NEWS: Shenghui Cleanness falls, then rises in HK trading debut
The latest: Shares of environmental cleaning services provider Shenghui Cleanness Group Holdings Ltd. (2521.HK) opened at HK$0.30 in their Tuesday trading debut, 6.3% lower than their IPO price of HK$0.32, giving the company a market capitalization of about HK$500 million ($64 million).
Looking up: The local portion of the company’s public offering in Hong Kong was oversubscribed by about 32.4 times, representing the best public response for recently listed IPOs.
Take Note: The company only priced its shares at HK$0.32, the lower end of its IPO price range, raising about HK$120 million.
Digging Deeper: The pandemic has been a difficult time for many industries, but also created some new business opportunities for certain companies like Shenghui, which benefited from growing awareness of the importance of public hygiene. As that happened, the company, which provides cleaning services for commercial buildings, residential properties, shopping malls and utilities, saw its revenue rise from 2020 to 2022, and recorded a net profit of more than 105 million yuan ($14.7 million) in the period.
Market Reaction: After opening lower, Shenghui’s shares rallied and closed up 9.4% at HK$0.35 by the midday break.
Translation by A. Au
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