Mainland punter bets $10m on Nongfu Spring


A mainland veteran investor splashed HK$10 million for subscribing to Nongfu Spring's new shares, while Yum China is eyeing to open retail books next week, mainland media reported.To get more news about Nongfuspring, you can visit en.nongfuspring official website.

China bottled water giant Nongfu Spring plans to price its Hong Kong initial public offering at HK$21.5, the top of indicative price range today to raise HK$8.35 billion, Reuters IFR reported .The international tranche of the float was significantly oversubscribed, before closing early yesterday.

Zhang Qiang, an H-share investor from Hangzhou, has applied to subscribe 500,000 Nongfu Spring's new shares through margin loan at the financing percentage of 90 percent, Qianjiang Evening News reported. That means Zhang pledged around HK$1 million in his BOCI Securities account as collateral for HK$10 million worth of shares.

The seasoned amateur said he used the maximum margin ratio for the first time so far this year to increase the success rate, as retail investors have already poured in over HK$181 billion in Nongfu Spring's flotation -- 310 times of the IPO size.

Meanwhile, Yum China, the operator of Pizza Hut and KFC in the mainland, is seeking to kick off secondary listing in Hong Kong as soon as next week, aiming to raise US$2 billion (HK$15.6 billion), mainland media reported.

Separately, Chinese e-cigarette maker RELX Technology is considering Hong Kong IPO to raise US$1 billion, according to IFR. But the company yesterday said it hasn't made any plan.The Hong Kong Monetary Authority yesterday sold HK$3.49 billion into the market in exchange for US dollars as the local dollar strengthened to the strong end of trading band.