Hypermarket jumps 22% on first day trade
26 September 2006
Hypermarket operator Beijing Jingkelong jumped 22.2% in its first day of trading on the Growth Enterprise Market, the Hong Kong Standard reported. Jingkelong is the second-largest supermarket chain operator in Beijing. The stock reached a high of US$0.80 before slipping to US$0.68 and finally closing at US$0.70 on US$77.7 million worth of transactions and 106.5 million shares traded. One financial strategist told the Hong Kong newspaper that Jingkelong was an individual case and warned that not only is the stock overvalued but stocks listed on the GEM board have higher investment risks since they do not have to give profit forecasts. Jingkelong raised US$121.4 million and will use the profits to expand its retail network, information systems and logistics.