Shares of Huaqin Co Ltd, a Chinese smart device maker and original design manufacturer, climbed 17% in their Hong Kong market debut on Thursday after the company raised HK$4.6 billion ($581 million) in a share offering.
The stock opened at HK$87.55 versus a listing price of HK$77.70, and rose as high as HK$90.95 before easing back to trade at the opening level.
Huaqin designs and manufactures electronic products for major technology brands, including smartphones, laptops, servers, smart home devices and wearables. It is also expanding into automotive electronics, robotics and software.
Huaqin said it plans to use the proceeds for research and development, expanding and optimising its manufacturing network, strategic investment and vertical integration, and working capital.
Cornerstone investors agreed to subscribe for about $290 million worth of shares, including funds managed by JPMorgan Asset Management and UBS Asset Management, the prospectus showed.
CICC and BofA Securities were the joint sponsors for the offering, according to the prospectus.
($1 = 7.8318 Hong Kong dollars)
Reuters
