The global frenzy for technology stocks sent shares of China Literature Ltd. surging on their first day of trading in Hong Kong.
shares started trading above 90 Hong Kong dollars (US$11.53), compared with the offer price of HK$55, and quickly approached HK$105 — a 91% gain. That gave the company a market value of about HK$95 billion (US$12.2 billion). The broader Hong Kong stock market rose slightly in early trading, with the Hang Seng Index
The Tencent Holdings Ltd.
unit operates an online library and makes money when its users pay to access books. About 6% of its nearly 200 million monthly active users paid to read in the first half of the year, and a majority of those users came through mobile.
There was strong interest in the offering, with investor orders for the retail side reaching about 625 times the amount of stock available. China Literature raised about US$1.1 billion through the IPO.
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