Shares of China Zhongwang down 2.85% in gray market

Shares of China Zhongwang<1333>, which makes its debut on the Hong Kong Stock Exchange (HKEx) today, closed at HK$6.8 yesterday, down 2.85% from its offer price of HK$7, the Standard reported.

Only 70 million shares of China Zhongwang changed hand in the gray market on turnover of HK$4.84 million. The trading prices of the shares were ranging from HK$6.78 to HK$7.10 apiece.

The company's performance was worse than expected, said Kingston Lin King-ham, Prudential Brokerage associate director, adding, however, its share prices may not fall below HK$7 on its trading debut due to the recent recovery in the stock market. 

Lin said China Zhongwang's offer price is near the low end of the price range. The company's price-to-earnings ratio is about 11 times its earnings forecast of around RMB 2.6 billion (HK$2.95 billion) for this year.

China Zhongwang, the largest manufacturer of aluminum extrusion products in the country, raised HK$9.49 billion through its initial public offering (IPO). Local investors subscribed for 96.1 million shares, accounting for 68.6% of the retail tranche, with the remaining 43.9 million uncovered shares being reallocated to the international offering.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.