Global Market: Ligent Technologies jumps 19% in Hong Kong listing debut

Shares of Chinese fibre-optic communications equipment maker Ligent Technologies surged as much as 19.2% in their Hong Kong debut on Tuesday, after the company raised HK$5.67 billion ($722.70 million) through its initial public offering, Reuters reported.

The stock opened at HK$36.60 and climbed to a high of HK$39.30 before paring gains. It was last trading at HK$36.20, up 9.8% from its IPO price of HK$32.96.

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The debut came as broader Hong Kong equities also traded higher. The Hang Seng Index was recently up 0.1%, while the Hang Seng Tech Index gained 1%.

According to Reuters, Ligent sold 172.01 million shares in its base offering, giving the company a market capitalisation of about HK$32.4 billion at the offer price.

The IPO attracted strong investor demand, with the Hong Kong public offering subscribed 35.16 times and the international offering subscribed 4.67 times, according to a company filing on Monday.

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Ligent's cornerstone investors include Primavera Investment Fund, GigaDevice, Amlogic Hong Kong, Mirae Asset Securities HK, PAG, ORIX-backed Turquoise Hime, Barings, GF Fund and E Fund, according to the company's listing prospectus.

The strong first-day performance adds to a series of closely watched new listings in Hong Kong as companies seek to tap investor demand and raise capital in the city's equity market, Reuters said in the report.

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