March 4, 2014

Huisheng delivers stellar debut performance in Hong Kong IPO

Share price of Chinese pork producer Huisheng International Holdings Ltd (Huisheng) rose steadily by 3% in its Hong Kong trading debut, after investors snapped up its US$31.7 million initial public offering (IPO), reported Reuters.

The retail portion of the Huisheng IPO generated 2,188 times more orders than the shares on offer, the second highest level of oversubscription in Hong Kong, underlining investors' confidence in China's rising demand for meat products.

Huisheng offered 100 million new shares in the IPO, while its chairman, Ding Biyan, offered 20 million shares.

As a staple of diet in China, robust demand for pork has attracted attention of investors. That is a good sign for WH Group, formerly known as Shuanghui International, which is slated for a US$6 billion Hong Kong listing in April.

Based in Hunan province, Huisheng is mainly engaged in the breeding, farming, slaughtering of pigs and processing of meat products. The company offers fresh pork, chilled pork, frozen pork and other processed pork products.