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426 - One Media News Story

HK$0.162 -0.0  -3.6%

Last Trade - 07/08/20

Consumer Cyclicals
Micro Cap
Market Cap £6.37m
Enterprise Value £5.84m
Revenue £6.88m
Position in Universe 5733rd / 5983

UPDATE 1-HK media firm Most Kwai Chung soars on debut; IPO tops popular list

Wed 28th March, 2018 9:57am
* Retail IPO portion 6,289 times subscribed, tops popular
    * Stocks end up 432 pct, record gain on small IPO debut
    * Market cap above Sing Tao, HK Econ Times, One Media  

 (Recasts; updates stocks prices)
    HONG KONG, March 28 (Reuters) - Hong Kong satirical media
group Most Kwai Chung Ltd  1716.HK  became the city's best-ever
first-day gainer after its shares leapt as much as 880 percent
on their debut in the city on Wednesday.
    The shares, which priced at HK$1.2 apiece and opened at
HK$8.40, shot as high as HK$11.76 in early trade before trimming
gains to end at HK$6.38 for a 432 percent gain. The benchmark
Hang Seng Index  .HSI  meanwhile fell 2.5 percent.
    The gain set a record for any company, however small,
listing on the stock exchange's Main Board, according to data
from Dealogic. The previous record was set earlier this month,
when B&S International Holdings Ltd  1705.HK  jumped 298
    The gains gave Most a market valuation of HK$1.72 billion
($219.2 million) - vaulting it far above established media
groups such as Sing Tao News Corp  1105.HK  with a market
capitalisation of $111.5 million, Hong Kong Economic Times
Holdings Ltd  0423.HK  at $78.6 million, and One Media Group
 0426.HK  at $67.4 million.
    Most, which describes itself as an advertising and media
services provider, attracted attention on Tuesday when the
retail public offering portion of 6.75 million shares was 6,289
times subscribed, making it Hong Kong's most popular ever IPO
among retail investors.
    The company is best known for its weekly satirical magazine,
100Most, launched in 2013 and aimed at a younger audience. 
    A total of 185.3 million shares changed hands - almost
triple the 67.5 million sold in the IPO. 
    "The rally totally couldn't be judged by fundamentals. It
was purely speculation with punters joining in for a ride aiming
for quick profit," said Steven Leung, a sales director at UOB
Kay Hian. "If you have the stock, take profit; if you don't have
the shares, don't chase them."
     Most's IPO raised HK$81 million. After taking out 26
percent of the proceeds to cover the cost of listing, the
company said the remaining funds would be used to fund mergers
and acquisitions, to expand business operations and its customer
base as well as to upgrade its TVMost website, mobile
application and internal IT system.
    Most chairman Iu Kar Ho, executive director Luk Ka Chun and
Tsui Ka Ho are controlling shareholders holding an aggregate
67.5 percent of the company.
    Ever-long Securities Co Ltd was the sole bookrunner and sale
lead manager of the issue.

($1 = 7.8472 Hong Kong dollars)

 (Reporting by Donny Kwok and Jennifer Hughes;
Editing by Christopher Cushing)
 ((; +852 2843 6470; Reuters
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