China Lilang Falls in Hong Kong as IPO Demand Wanes

"China Lilang Falls in Hong Kong as IPO Demand Wanes | AboutHK.Com - More Information About HK"

Bloomberg China Lilang Ltd., owner of China’s biggest men’s clothing brand, fell on its first day of trading in Hong Kong, the second stock listing this week to post losses for the city’s investors. Lilang fell 0.8 percent to close at HK$3.87 on the Hong Kong stock exchange, after declining as much as 6.9 percent earlier. The company raised HK$1.17 billion ($151 million) after pricing its IPO at HK$3.90 a share. The city’s benchmark Hang Seng Index fell 1 percent. The drop in Lilang stock follows the 12 percent decline posted by Metallurgical Corporation of China Ltd. when its shares debuted yesterday. That was the weakest first-day performance for a newly-listed company in Hong Kong this year. Billionaire Lee Shau-kee said it may not be the right time to invest in IPOs, the Standard newspaper reported yesterday. “Investors will become more cautious about buying into IPOs, following the debuts this week,” said Louis Wong, a fund manager at Phillip Securities HK Ltd. in Hong Kong. “Lilang’s business is OK because it has a good sales network and demand for men’s clothing in China should pick up.” China Metallurgical, which builds steel mills and helped construct Beijing’s “Bird’s Nest” Olympic stadium, rose 1.3 percent to HK$5.68 today. The stock fell from its IPO price of HK$6.35 yesterday on concern government efforts to curb industrial overcapacity may limit profit growth. To contact the reporter on this story: Mark Lee in Hong Kong at wlee37@bloomberg.net This e-mail address is being protected from spambots. You need JavaScript enabled to view it