China's Topsports rises 8% in Hong Kong debut after $1 bln IPO (updated)

Topsports International Holdings

10/10/2019 03:34

(Adds trading update and company background)
    By Scott Murdoch
    HONG KONG, Oct 10 (Reuters) - Shares in Topsports
International Holdings  6110.HK  rose nearly 8% on debut in Hong
Kong on Thursday after China's largest sportswear manufacturer
raised $1.0 billion in an initial public offering (IPO) last
week. 
    The stock of the Shenzhen-based company climbed to HK$9.16,
compared to the IPO price of HK$8.50 ($1.08) which had given it
a market capitalisation of about $6.74 billion.  urn:newsml:reuters.com:*:nL3N26O0YQ
    The broader Hong Kong stock market  .HSI  was up 0.4%.
    The performance of Topsports shares will be closely watched 
as a test of investor sentiment given new stock issuance on the
Hong Kong share market has slumped 44.4% so far in 2019 compared
to the same period last year, according to Refinitiv data. 
    The fall has been attributed by bankers and analysts to
negative investor sentiment created by the political unrest that
has gripped Hong Kong.
    Topsports distributes and is a retail partner of global
sportswear makers Nike Inc  NKE.N  and Adidas AG  ADSGn.DE .
    As part of the IPO, Topsports has the right to exercise an
over-allotment option, known as a green shoe, to raise up to
$1.2 billion. The IPO was sponsored by Bank of America  BAC.N  
and Morgan Stanley  MS.N . 
    Topsports previously said it would use nearly 27% of the IPO
proceeds to repay short-term bank loans and 45% to repay debt to
parent Belle International Holdings Ltd.
    The IPO followed that of Budweiser Brewing Company
 1876.HK , which raised $5 billion on Sept. 24 in the world's
second largest IPO this year. Budweiser's shares have risen to
HK$32.40 from the HK$27.0 issue price.  urn:newsml:reuters.com:*:nL3N26I038

 (Reporting by Scott Murdoch and Donny Kwok; Editing by Clarence
Fernandez and Muralikumar Anantharaman)
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters
Messaging: donny.kwok.reuters.com@reuters.net))