New Media braves weak market with stock debut
Updated: 2008-02-12 07:42
By Hui Ching-hoo(HK Edition)
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If the pre-public listing price of New Media Group Holdings' shares is any indication, the first publicly listed stock in the lunar new year could be in for some new year fortune.
The Chinese magazine publishing company saw its share price climb to HK$1 yesterday, up from HK$0.68, in the grey market, according to Phillip Securities.
The firm earlier decided to brave the bleak market sentiment - which caused four other IPO hopefuls to call off their public listings before the lunar new year.
So, New Media has the distinction of being the first newly listed company in the Year of the Rat.
Solar-wafer maker Solargiga Energy Holdings, port constructor SFK Construction Holdings, retailer Maoye International and oil-rig maker Honghua Group all decided last month to delay their listing plans.
As the only IPO available in the market, New Media Group saw its retail tranche of the deal - which is earmarked for individual investors - 47 times oversubscribed.
New Media Group Chief Executive Officer Shirley Hughes earlier said she wasn't worried about the market fluctuation because it wouldn't affect the company's profitability in the long term.
CASH Asset Management Associate Director Patrick Yiu said he wouldn't be surprised to see the stock soar 20 percent in its first trading day, "given that the company's core business is Hong Kong-orientated".
"The two factors behind the recent market woes - the mainland's tightening policy and the subprime crisis in the US - will not be applicable to New Media Group," Yiu explained.
But the analyst said that the publishing company's rally could be an individual case. "Overall, the worst isn't over," he said.
(HK Edition 02/12/2008 page2)