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Business
Haidilao unable to sustain its initial hype, shares fall below IPO price
CKN
2018/09/27 07:53:03
2,041
China's Financial News, China News, Haidilao

Sep 27, 2018 (China Knowledge) - Haidilao International Holding Ltd <6862:HK>, valued at USD 12 billion during its IPO, is unable to sustain the initial hype investors had in the company’s initial public offering (IPO) on the Hong Kong Stock Exchange yesterday.

The company is valued at 7.5 times higher than its reported revenue of USD 1.6 billion in 2017. The revenue reaped in 2017 also make the company the largest chain globally, according to its prospectus. Haidilao shares were oversubscribed before trading, with its public sale trance being overbought by more than 4 times.

Haidilao shares climbed by as much as 10.3% when it started trading yesterday, hitting HKD 19.64 at one point of time. However, the company shares has since fallen by 3.25% after the market opened today. The company shares are currently priced below its IPO price at HKD 17.24 apiece, as the market break for lunch.

The company shares opened at HKD 17.80 today, and hit its lowest at HKD 17.12. Analyst like Jackson Wong, associate director at Huarong International Securities are wary about the prospect of Haidilao, "I personally didn't subscribe, I think the valuation is a bit high to my appetite," Wong told CNBC on Wednesday.

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