Evergrande Real Estate Group, the largest Chinese developer by third-quarter sales, rose as much as 20% on its trading debut in Hong Kong.Evergrande gained 14% from its initial public offering price. The city’s benchmark, Hang Seng Index, during the same period fell 0.8%.
The New York Times reported the Guangzhou-based developer and existing stockholders raised US$729 million selling 1.61 billion shares after pricing the IPO in the middle of the offered range. Other Chinese builders’ IPOs were coolly received because of an oversupply of offers and high valuations. It must be dashed difficult to get both the price and the timing right.
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