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Shares of Maoyan, China's online ticketing platform, lost 1% on their debut on the Hong Kong Stock Exchange. At the early closing on Monday, the stock was HKD 14.64.
The company had set the price of its new issue shares at 14.8 Hong Kong dollars, he confirmed in regulatory documents filed last week. It was at the bottom of the price range indicated by the company. The listing price gave Maoyan a value lower than the $ 2.2 billion used in one of his previous private fundraising campaigns.
The first transactions on the market led this valuation to an even lower level. At $ 14.64 per share, the company has a market capitalization of $ 2.12 billion ($ 16.6 billion Hong Kong).
The IPO was "moderately oversubscribed," the company said. The offer attracted bids for 2.32 times the proposed stock volume, meaning that banks offering bids were not obliged to intervene.
Nevertheless, the offer came with an immediate warning of concentration reflecting a high proportion of shares in a small number of hands. Once the listing is on the market, the top five shareholders will own 79% of Maoyan's shares.
New funds raised for the company from the sale of shares amounted to $ 235 million (HK $ 1.83 million). As noted earlier, some 30% will go to further integration with other platforms, 30% to research and development, and another 30% will be used for acquisitions. The remaining 10% will inflate working capital.
The shares were only traded for half a day, before the Hong Kong Stock Exchange took a three-and-a-half-day break for Chinese New Year holidays.
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