Shares of luggage maker Samsonite International SA plunged on their first day of trading yesterday, amid waning investor interest in IPOs as global stock markets slide.
Samsonite shares fell as low as HK$12.96, or 10.6 percent, from their offer price of HK$14.50. They were down HK$13.52, or 7 percent, by late morning.
The world’s biggest luggage maker is one of a number of foreign companies going public in Hong Kong, drawn by China’s strong economic growth. However, Samsonite’s listing comes as Hong Kong stocks follow global markets lower, hit by pessimism about the global economy.
The company raised HK$9.73 billion (US$1.25 billion) by selling 672.24 million shares, though that amount was less than the US$1.5 billion it could have raised by selling shares at the top end of the proposed price range for the offering.
It said the portion of the IPO allocated to big global investors was “moderately oversubscribed.”
Hong Kong retail investors, who play a big part in IPOs, applied for only 1.2 times the number of shares available to them.
Samsonite was founded in 1910 in Denver, Colorado, but the company plans to focus on developing its business in Asia, chairman Tim Parker said at a listing ceremony at the Hong Kong stock exchange.
“We expect over the next few years to be developing our company extensively in Asia, in our biggest markets in China and India,” Parker said.
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