Shares in a Hong Kong magazine publisher surged almost 900% on their first day of trading
- Hong Kong media company sees shares jump almost 900% on day of IPO.
- Shares in Most Kwai Chung, a media firm which publishes a popular satirical magazine, climbed from HK$1.2 (£0.11; $0.15) to a high of HK$11.76 (£1.06; $1.50).
- "We feel surprised about the market response," a spokesman for the company said.
LONDON - Shares in a Hong Kong media company and publisher surged nearly 900% from their opening price on Wednesday.
Most Kwai Chung, a media firm which publishes a popular satirical magazine called 100 Most and has a TV channel called Most TV, debuted on Hong Kong's Hang Seng index.The firm's IPO was 6,289 times oversubscribed - meaning that people wanted to buy 6,289 times more shares than were being offered.
Prices surged as a result, with the company's stock climbing from an initial price of around HK$1.2 (£0.11; $0.15) to a high of HK$11.76 (£1.06; $1.50) during the day. That marks a rise of 880%.
"We feel surprised about the market response," Ivan Yuen, a spokesman for the company said, according to a report from the South China Morning Post.
After a huge initial spike, prices have slipped, and by around 8.35 a.m. BST, just before the close of the Hong Kong market, price services are quoting Most Kwai Chung's share price at around HK$6.35 (£0.57; $0.81).
100 Most, Most Kwai Chung's flagship product is a satirical weekly magazine which includes 100 Chinese language articles about topics of the week. It was launched in 2013, and has quickly gained popularity among younger people in the city state.
"The demand for the stock is largely due to the brand name," Alex Wong, director of asset management at Hong Kong-based Ample Capital told the SCMP."100Most magazine and Most TV are popular among many Hong Kong people."