Green Tea Group had a tepid trading debut in Hong Kong on Friday, as traders sidestepped its small stock sale in anticipation of the world’s largest initial public offering (IPO) next week.
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Shares of the Hangzhou-based restaurant chain began trading at HK$7.19 per share, unchanged from the offer price, before plunging 7 per cent in a declining market to an intraday day low of HK$6.69. The company raised HK$847 million (US$108.5 million) through selling 68 million shares.
Green Tea’s flat opening broke the city’s recent streak of frenzied first-day transactions, led by Auntea Jenny’s 75 per cent debut last week and the 40 per cent jump when Mixue Group began trading in March.
Traders are looking forward to the trading debut on Tuesday of Contemporary Amperex Technology (CATL), the world’s largest maker of battery packs for electric vehicles. CATL’s US$5.3 billion stock offer, priced at HK$263 per share at the high end of its price range, is the world’s largest this year, and the biggest sale in Hong Kong in four years.
Fifteen companies raised HK$17.7 billion in Hong Kong in the first quarter of this year, helping the city claw its way to the third spot in the global ranking of IPO destinations, according to KPMG’s data.
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