23 July 2019
B&S International's top executives and their family members attend the firm's listing ceremony in Hong Kong on Wednesday. Photo: HKEJ
B&S International's top executives and their family members attend the firm's listing ceremony in Hong Kong on Wednesday. Photo: HKEJ

Beauty and the sweet IPO

You know they are hot. But perhaps not sure how long the ride can last.

In case you are wondering, I’m talking about the new listings that Hongkongers just can’t seem to get enough of.

In the latest case, B&S International, a distributor of food and beverages including the popular TenRen Tea brand, continued to chart fresh highs on Thursday after notching a three-fold gain on its debut the previous day.

On the second day of trading, B&S surged as much as 98 percent to HK$7.90 before ending the session at HK$5.71, up 43.5 percent.

The gains are stupendous, given that the company had sold its IPO shares at HK$1 each.

On the first day, the stock ended at HK$3.98, making B&S one of the best Hong Kong debutants in ten years. 

An IPO allottee who secured a minimum lot of 4,000 shares would have reaped a quick gain of almost HK$12,000 on a HK$4,000 investment.

B&S’ day-one return tops that of China Literature, a Tencent spin-off whose shareholders made HK$9,480 per lot on the first day, and also that seen in Ulferts International, whose shareholders made HK$10,400 per lot.

But the gains are only for the lucky few who manage to secure allotment in the red-hot IPOs. In the case of B&S, only 3 percent of retail applicants were able to land a minimum lot, as the offering had been over-subscribed 2,600 times.

Speaking of B&S, Chairman Andrew Chan’s daughter grabbed a lot of media attention during the listing ceremony.

Tinny Chan, who has been compared in looks to Chinese actress Zhang Zhiyi, is currently a student, having enrolled for Oxford University’s master of law program.

Asked if she will join the company after graduation, her father said she will probably practice law, just like her mother.

Tinny is not the only pretty woman that has made it to the financial pages during listing events. Two years ago, actress Priscilla Wong joined in the listing ceremony of her father’s construction company Luen Wong Group and kept the media talking about her for at least a year.

On the big day, Priscilla took to the social media to write that her father began as a fish hawker but changed gear to construction and got his firm eventually listed in the Growth Enterprise Market in Hong Kong.

Luen Wong saw its shares gain in value almost 100-fold in six months before a crash in the following 15 months that took the counter back near its IPO level.

Well, maybe you shouldn’t get carried away by a beautiful face!

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EJ Insight writer

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