China's Ming Yuan Cloud shares rise 86% in Hong Kong debut (updated)

Ming Yuan Cloud group

25/09/2020 10:06

(Adds closing price and background)
    By Donny Kwok and Scott Murdoch
    HONG KONG, Sept 25 (Reuters) - Ming Yuan Cloud Group
Holdings Ltd  0909.HK  shares closed 86% above their IPO issue
price on Friday making it one of the best performing deals of
the year in Hong Kong.
    The Guangdong-based property software firm sold 374 million
primary shares in the IPO, raising HK$6.17 billion ($796.15
million) to help from upgrading technologies to funding sales
and strategic investments and acquisitions.
    The stock traded as high as HK$32 per share during the
session, up 93.9% from the IPO price of HK$16.50 apiece.
    The shares ended the first day of trading at HK$30.70, up
86% from the IPO price and the stock was the most actively
traded by turnover.
    The closing price valued the firm at HK$57.4 billion ($7.41
billion), up from HK$30.9 billion ($3.9 billion) at the IPO
price of HK$16.50 each, Refinitiv's Eikon data showed.
    Its 86% surge ranks it among the best performing first day
stocks for a Hong Kong IPO in 2020.
    The strongest debut was Macau E&M Holdings  1408.HK  when
its shares ended up 186% higher after it raised just $16 million
in its IPO this month, Refinitiv data showed.
    Among the bigger deals, e-cigarette maker Smoore
International  6969.HK  rose 150% when it debuted in July
following its $1.05 billion raising.
    Ming Yuan's deal was 644 times oversubscribed by retail
investors, according to documents lodged with the exchange,
continuing the recent trend of strong participation in Hong Kong
IPOs by mom and pop investors. 
    "Its list of renowned cornerstone investors comprising big
names and large funds, attracted followers," said Steven Leung,
sales director at UOB Kay Hian about Ming Yuan's share price
increase.
   ($1 = 7.7499 Hong Kong dollars)

 (Reporting by Donny Kwok and Scott Murdoch in Hong Kong;
editing by Shri Navaratnam and Jason Neely)
 ((Scott.Murdoch@thomsonreuters.com;))