China’s Topsports rises 8% on Honk Kong listing debut

Photo: Pixabay

Shares in Topsports International Holdings rose nearly 8% on debut in Hong Kong on Thursday after China’s largest sportswear manufacturer raised $1.0 billion in an initial public offering (IPO) last week.

The stock of the Shenzhen-based company climbed to HK$9.16, compared to the IPO price of HK$8.50 ($1.08) which had given it a market capitalisation of about $6.74 billion.

The broader Hong Kong stock market was up 0.4%.

The performance of Topsports shares will be closely watched as a test of investor sentiment given new stock issuance on the Hong Kong share market has slumped 44.4% so far in 2019 compared to the same period last year, according to Refinitiv data.

The fall has been attributed by bankers and analysts to negative investor sentiment created by the political unrest that has gripped Hong Kong.

Topsports distributes and is a retail partner of global sportswear makers Nike Inc and Adidas AG.

As part of the IPO, Topsports has the right to exercise an over-allotment option, known as a green shoe, to raise up to $1.2 billion. The IPO was sponsored by Bank of America and Morgan Stanley.

Topsports previously said it would use nearly 27% of the IPO proceeds to repay short-term bank loans and 45% to repay debt to parent Belle International Holdings Ltd.

The IPO followed that of Budweiser Brewing Company, which raised $5 billion on Sept. 24 in the world’s second-largest IPO this year. Budweiser’s shares have risen to HK$32.40 from the HK$27.0 issue price.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.