(01:25 GMT) *Jiangxi Qiyunshan Food Shares Open at HK$16.00 Vs. HK$8.00 IPO Price in Hong Kong Debut (02:29 GMT) Shares of Jiangxi Qiyunshan Food Nearly Triple in Hong Kong Trading Debut
By Jason Chau
Shares of Chinese food company Jiangxi Qiyunshan Food soared in their Hong Kong trading debut amid strong demand for initial public offerings in the Asian financial hub.
The stock was trading at 23.90 Hong Kong dollars, equivalent to US$2.93, on Thursday morning, nearly triple its offer price of HK$8.00. The company raised HK$200 million via its IPO.
Qiyunshan's successful debut comes as investors flock to Hong Kong's IPO market amid a wave of mainland Chinese listings in the city.
The company intends to use net proceeds from the offering to expand production and storage capacity, strengthen research and development capabilities, grow its offline sales and distribution network in China and develop its e-commerce infrastructure.
Qiyunshan has produced preserved fruit plums since 1992 and is the market leader in the segment in China. It has expanded its product portfolio to include fruit and vegetable pastes in recent years. The company reports high and steadily improving profit margins, according to its filing.
Several Chinese food and beverage companies have tapped the strong market sentiment to go public in Hong Kong earlier this year, including snack retailer Busy Ming, beverage giant Eastroc and the world's largest caviar producer Xunlong Sci-tech.
Write to Jason Chau at jason.chau@wsj.com