Shares in Li Ka-shing’s Internet company tom.com Ltd. surged 4.35 times its
IPO price of HK$1.78 (US$0.22) and closed its first trading day on the
Hong Kong Stock Exchange Wednesday at HK$7.75 (US$1).
The shares plateaued at HK$9.70
(US$1.25) on the first day.
Trading was frantic with 303 million shares changing hands, making tom.com the third-hottest stock of the day
after Pacific Century CyberWorks Ltd and Cable and Wireless HKT Ltd.
tom.com’s IPO scramble attracted about 300,000 applicants in a last-minute dash to
submit the application forms last Wednesday.
Juliette Chow, head of Internet & new media equity research of Lehman
Brothers Asia Ltd, said the tom.com chaos and the surge of its IPO price are
caused by the scarcity of listings on Growth Enterprise Market (GEM) Board; the potential growth of tom.com with the strength of its shareholders; and the revenue streams from content and ads.
To forestall further chaotic IPO-application scenes, some people suggest using electronic IPO methods,
which would enable public investors who register in the Central Clearing and
Settlement System to subscribe by telephone instead of queuing up at the
banks.
Sunevision, the technology flagship of Sun Hung Kai Properties, plans to list
on the GEM Board by the end of this month. Company officials said that now is not the right time to answer whether Sunevision will use electronic means for their
IPO or stick with the queue method.
According to company officials, Sunevision will offer 300 million shares at
a IPO price range of $8.38 to $10.38 each share, of which 30 million shares
will be offered to public investors.
