Topsports Shares Surge on Hong Kong Debut -- Update
October 10 2019 - 01:13AM
Dow Jones News
By Martin Mou
Chinese sportswear retailer Topsports International Holdings
Ltd. (6110.HK) got off to a strong start in its Hong Kong debut,
rising nearly 12% in a reflection of investors' appetite for
consumer-related stocks amid volatility in the city's stock
market.
Shares in the distributor of brands such as Nike and Adidas
opened flat on Thursday at their initial public offering price of
8.50 Hong Kong dollars (US$1.08) before surging within minutes of
trading to HK$9.50.
Topsports, the sportswear unit of formerly listed footwear
retailer Belle International Holdings Ltd., had priced its shares
near the lower end of its indicative HK$8.30-HK$10.10 range. The
IPO raised HK$7.91 billion.
Topsports' debut reflects that consumer-related stocks are in
high demand as they offer assured growth with high
price-to-earnings ratios.
When Budweiser Brewing Co. APAC Ltd. (1876.HK) made its Hong
Kong debut on Sept. 30, its shares rose as much as 6.7% from its
IPO price of HK$27.00. Shares in the beer company are currently at
HK$31.95.
Budweiser, a unit of the world's largest brewer Anheuser-Busch
InBev SA (ABI.BT) raised US$5 billion in its IPO, making it the
biggest such offering in Hong Kong so far this year and the
second-largest worldwide.
At mid-day, Topsports shares were trading up 9.4% at HK$9.30,
pushing the retailer's market capitalization up to HK$57.67 billion
from HK$47.93 billion at the start of trading.
Bank of America Merrill Lynch, Morgan Stanley, Goldman Sachs and
CICC advised Topsports on the IPO.
Write to Martin Mou at martin.mou@wsj.com
(END) Dow Jones Newswires
October 10, 2019 00:58 ET (04:58 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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