BRIEF: Mokingran stock rises in Hong Kong trading debut
Shares of jewelry retailer Mokingran Gold Jewelry Group Co. Ltd. (2585.HK) opened 4.2% higher from their IPO price of HK$12 during in their trading debut on Friday. They reached a high of HK$13.20 during the day, before closing at HK$12.90, up 7.5%, giving the company a market capitalization of HK$3.5 billion ($450 million).
Mokingran said IPO shares available to local Hong Kong investors were oversubscribed by 19.58 times. Since the international portion of the deal was undersubscribed, a clawback mechanism was triggered that increased the amount of shares sold to Hong Kong-based buyers to 20% of the total on offer. The HK$12 IPO price represented the lower end of the indicative range, raising total proceeds of HK$527 million.
Headquartered in Tianjin, Mokingran manufactures, designs and sells gold and silver jewelry, mostly targeting smaller cities in China’s jewelry market. At the end of June, the company had 1,670 franchisees operating 2,850 stores, along with 36 self-operated stores.
By Lee Shih Ta
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