Chenming Paper drops before debut
StephanieTong; Wednesday, June 18, 2008
The mainland's largest paper maker Shandong Chenming Paper Holdings (1812) is tipped to join a growing list of IPO flops on its trading debut today.
"Unless Hong Kong stocks surge a lot, shares in Chenming are likely to plunge below its offer price by about 10 percent," said Prudential Brokerage associate director Kingston Lin King-ham.
In gray market trading yesterday, Chenming closed at HK$8.20, down 8.9 percent from its offer price of HK$9 per share. It hit a low of HK$7.94 and not once rose above the offer price. Investors holding 500 shares have already booked a paper loss of HK$400 based on the gray market close.