-
Advertorial
-
FOCUS
-
Guide
-
Lifestyle
-
Tech and Vogue
-
TechandScience
-
CHTF Special
-
Nanshan
-
Futian Today
-
Hit Bravo
-
Special Report
-
Junior Journalist Program
-
World Economy
-
Opinion
-
Diversions
-
Hotels
-
Movies
-
People
-
Person of the week
-
Weekend
-
Photo Highlights
-
Currency Focus
-
Kaleidoscope
-
Tech and Science
-
News Picks
-
Yes Teens
-
Budding Writers
-
Fun
-
Campus
-
Glamour
-
News
-
Digital Paper
-
Food drink
-
Majors_Forum
-
Speak Shenzhen
-
Shopping
-
Business_Markets
-
Restaurants
-
Travel
-
Investment
-
Hotels
-
Yearend Review
-
World
-
Sports
-
Entertainment
-
QINGDAO TODAY
-
In depth
-
Leisure Highlights
-
Markets
-
Business
-
Culture
-
China
-
Shenzhen
-
Important news
在线翻译:
szdaily -> Markets -> 
Tencent’s e-book unit makes strong debut
    2017-11-09  08:53    Shenzhen Daily

CHINA Literature Ltd., Tencent Holdings Ltd.’s e-book unit, saw its shares double in their trading debut yesterday as Hong Kong investors embrace a rush of tech listings, with the stock on track to mark the biggest first-day pop for a large initial public offering (IPO) globally this year.

The company’s stunning debut has shown that Hong Kong has raised its game as it strives to compete with the New York and NASDAQ exchanges, which have been the more traditional homes for Chinese tech IPOs seeking to attract international investors.

China Literature’s shares rose to as much as HK$110 (US$14.10) in early trade, compared with its offering price of HK$55 per share, giving it a market value of nearly US$13 billion. The shares eased to close at HK$102.40.

“As the first Tencent-controlled subsidiary tapping capital markets, China Literature has to perform well in the secondary market to set a good example for other Tencent units,” said an institutional investor who took part in the IPO, declining to identified.

But while many investors cheered the stock on, others noted that yesterday’s valuations for the Tencent unit were stretched.

Company executives project net profit of 400 million yuan (US$60 million) for 2017 and 1 billion yuan for 2018, according to investors who attended IPO roadshow meetings.

That implies China Literature is trading at 201 times its forecast 2017 earnings and 80 times its 2018 projections. By contrast, Tencent is trading at 51 times its 2017 forecast profits.

Co-CEO Liang Xiaodong told reporters after the opening bell ceremony that the stock’s surge was a pleasant surprise.

China’s biggest e-book platform offers 9.6 million literary works from 6.4 million authors. Tencent began e-book publishing in 2004 and after an internal reorganization, formed China Literature in 2013.

China Literature’s IPO success comes as the number of tech offerings in Hong Kong is picking up. Online insurance group ZhongAn raised US$1.5 billion in September in Asia’s biggest-ever financial technology IPO. Its shares jumped 18 percent in their debut.

Razer Inc., a gaming hardware maker backed by Hong Kong billionaire Li Ka-shing as well as Intel Corp., will make its Hong Kong debut next Monday. It has priced its HK$4.12 billion IPO near the top end of its price range, IFR reported Tuesday. (SD-Agencies)

 

深圳报业集团版权所有, 未经授权禁止复制; Copyright 2010, All Rights Reserved.
Shenzhen Daily E-mail:szdaily@szszd.com.cn