Gray market shows day

The gray market brought mixed fortunes for the three companies making their listing debut today.

Chanjet Information Technology (1588) rose 2 percent from its offer price, but mainland peers Changgang Dunxin Enterprise (2229) and Cosmo Lady (2298) fell as much as 3.57 percent and 2 percent, respectively.

Chanjet, the spin-off of Shanghai-listed Yonyou Software, froze HK$19.84 billion after its retail tranche was oversubscribed by 209.35 times.

Changgang traded below its offer price of HK$1.40 on the Phillip Securities platform, while lingerie maker Cosmo Lady closed at HK$3.53, down 1.94 percent from its offer price of HK$3.60.

Upcoming listing hopefuls include Shandong drugmaker Luye Pharma, which opens the retail book today to raise up to HK$5.92 billion.

Minimum investment for one board lot of 500 shares is HK$2989.84.

Executive chairman Liu Dianbo said Luye listed in Singapore in 2004, but decided to go private after finding that market had low liquidity. He believes Hong Kong has more liquidity and will be better for promoting the brand due to its proximity to the mainland.

Retail bookbuilding ends on Wednesday, with trading debut slated for July 9.

Opening their retail books on Monday will be China Aircraft Leasing and On Time Logistics, hoping to raise HK$1.17 billion and HK$130 million, respectively.

Inner Mongolia-based China Shengmu Organic Milk will be seeking around HK$2.34 billion through a listing next month.

Separately, Fujian-based menswear brand China Fordoo, the local distributor of Swiss watch brand Ernest Borel and mattress maker Sinomax start taking orders from retail investors next week.

Meanwhile, hotel operator Jinmao Investments Jinmao (China) Investments priced its float at HK$5.35, the lower end of an indicative range.

Earthasia International (6128) closed 1.67 percent lower than its offer price of HK$1.20 on trading debut, while Central China Securities (1375) closed at HK$2.16, or 14 percent lower than its offer price.

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