0999.HK

Budget restaurant chain operator Xiaocaiyuan (0999.HK) opened up 5.9% in its trading debut on Friday in Hong Kong from its offer price of HK$8.50. Based on a lot size of 800 shares, investors who purchased at the IPO price and sold based on the opening price earned HK$400 per lot before fees.

Xiaocaiyuan announced it sold 101 million shares to raise HK$795 million ($102.3 million), with 10% allocated to local Hong Kong investors and 90% to international investors. The Hong Kong portion was 1.44 times oversubscribed, while the international offering was 1.29 times oversubscribed.

The company plans to use approximately 40% of the net proceeds to expand its store network, 37% to enhance supply chain capabilities, 13% to upgrade smart equipment and digital systems, and the remainder for general corporate purposes. Xiaocaiyuan’s stock held on to most of their gains in the morning session and closed up 4.5% at HK$8.88 by the midday break on Friday.

By Lee Shih Ta

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