Date
18 October 2017
CICC shares drew strong interest following news that China will allow resumption of IPOs in the country. Photo: Bloomberg
CICC shares drew strong interest following news that China will allow resumption of IPOs in the country. Photo: Bloomberg

CICC jumps in HK debut as China set to resume IPOs

China International Capital Corp. (CICC), China’s largest foreign-backed investment bank, saw its shares post strong gains on their debut in Hong Kong on Monday.

News that Chinese authorities will allow resumption of IPOs helped CICC post 7.4 percent gain on its first day of trading.

The stock closed at HK$11.04 (US$1.42), against its IPO price of HK$10.28, after surging as much as 11 percent during the day.

CIIC raised US$811 million in its initial public offering, after pricing the offer at the top of an indicated range.  

The company was established in 1995 as a joint venture between China Construction Bank, Singapore wealth fund GIC and US investment bank Morgan Stanley.

It now counts private-equity firms KKR & Co and TPG Capital among its shareholders, according to Reuters.

The 7.4 percent jump on Monday marked one of the best first-day performances of any IPO in Hong Kong this year.

CICC fared better than Huatai Securities Co., which climbed 4.8 percent on its debut on June 1 after raising US$5 billion from the largest IPO in Hong Kong this year, the Wall Street Journal noted.

The strong debut came after China’s securities regulator said on Friday that 10 companies that had already been approved for listing could come to market within roughly two weeks, while another 18 could launch their IPOs before year-end.

The resumption of IPOs in China, following a four-month halt, will boost the prospects of investment banks such as CICC.

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