Sun Art up 41% on IPO

Sun Art Retail Group (6808.HK), a mainland hypermarket operator, saw its share price jump 47% following its initial public offering on the Hong Kong Stock Exchange on Wednesday, the Wall Street Journal reported. The company, a joint venture between Taiwan conglomerate Ruentex Group (2915.TW) and Groupe Auchan of France, is reckoned to have raised about US$1.06 billion from the IPO. Analysts cited strong investor demand for firms with exposure to mainland consumers, despite recent lackluster IPO performances on the Hong Kong bourse. “The strong debut of Sun Art may bode well for other upcoming companies which aim to list in Hong Kong,” said Kenny Tang, executive director of Redford Asset Management. “However, investors will still be selective in their IPO investments.” Several large mainland firms have postponed Hong Kong IPO launches in recent weeks due to market volatility and investor fatigue, most notably China Everbright Bank (601818.SH).