Zhou Liu Fu Jewellery (HKG:6168) saw its stock price surge 14.38% in early trading on Thursday, marking a strong debut on the Hong Kong Stock Exchange. The Chinese jewelry company's impressive start comes on the heels of a highly successful initial public offering (IPO) that raised HK$1.19 billion (approximately US$152 million) in net proceeds.
The company's IPO garnered significant investor interest, with the Hong Kong public offering portion being 711.11 times oversubscribed. This overwhelming demand led to a reallocation of shares from the international offering to the Hong Kong public offering, increasing the latter from 4,680,800 to 23,404,000 shares. Zhou Liu Fu Jewellery priced its shares at HK$24.00 each, the upper end of its expected range, further indicating strong market confidence in the company's prospects.
The robust debut of Zhou Liu Fu Jewellery reflects the current appetite for consumer-focused businesses in the Chinese market. As the company begins its journey as a publicly-traded entity, investors will be closely watching its performance and expansion strategies in the competitive jewelry market. The successful IPO and strong first-day trading performance provide Zhou Liu Fu with a solid foundation for future growth and development.
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