Wednesday, 15 November 2017

Yixin Group - Up 43% Against IPO Price

Yixin Group will debut it's trading tomorrow. Studied most of the IPOs listed in Hong Kong, I can see that this counter is better than Razer in terms of prospect because Tencent was one of the major share holder and I believe some major funds are also the cornerstone investors for this stock. Looking at the over subscribed data, it was 560x which meant everyone is trying to get a pie on it and it's 1 lot success rate is on 10% which is considered good given that China Literature was 7%.

The IPO share is $7.70 and the gray market opened was $10.50 which indicated a very strong interest. The closing in the gray market was 10.96 and I believe tomorrow the stock might gap up. I will be trading this counter tomorrow.

COMPANY Yixin Group Limited (易鑫集团,) was founded by Bitauto (listed in US under BITA) with early backing from Tencent, Baidu and in 2013. It operates in 2 business segments: · Transaction Platform business for automobile purchases, auto loans and other value-added services · Self-operated financing business that primarily provides auto finance

Did you know?

1) This IPO was 560 times oversubscribed (according to Nikkei Asian report)
2) With the IPO priced at the top of the range, initial market cap for Yixin Group will be at HKD 48.33 billion. Yixin Group Limited will begin trading on 16 Nov 2017 (Wed) on the Hong Kong Exchange under stock code 2858.HK
3) Yixin Group is backed by local tech giants Tencent, Baidu and Tencent, one of the major shareholder of Yixin Group, was listed in Hong Kong Stock Exchange in 2004 at IPO price of HKD 3.7. As at 14 Nov, Tencent closed at HKD 388, which was more than 100 times its IPO price.
4) Another Tencent backed counter – China Literature (772.HK, IPO price set at HK$55), was listed on 8 Nov. Its share price rose as high as 100% on the first day of trading, and closed at HK$100.9 pm on 14 Nov (up more than 80% from IPO price).

Ronald K - A Game Changer