China Shipping Container Lines, experienced a 75 per cent rise on its debut on the Shanghai stock exchange, earning CNY15.5 billion (US$2.1 billion), with its share price climbing from its CNY6.62 offer to CNY11.57, reported Bloomberg.
The sale was 170 times oversubscribed as stockholders appeared to want big new listings following a 17 per cent fall in the CSI Index last month.
"New share sales are a safer choice for investors who have become more cautious after the stock tumble," said analyst Edward Wong of Hong Kong's Quam Ltd. "Excessive capital in the mainland has to find chips to buy even when the market is volatile."
China Shipping attracted CNY2.64 trillion in orders for the stock sale, according to a Shanghai Stock Exchange statement.
Later the price fell 12 per cent after billionaire Li Ka-shing's flagship companies offered to sell. China Shipping has a market value of US$15.1 billion, said Bloomberg.
China Shipping said it will use the money to build 16 new containerships.
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