Tianhe Chemicals Group Ltd. rose in its debut in Hong Kong trading after the Chinese chemical maker priced shares near the lower end of the proposed price range.
The stock gained 2.8 percent to HK$1.85 from its initial public offering price of HK$1.80. The company priced its 2.82 billion shares near the low end of an indicative range of HK$1.75 to HK$2.25.
“Our offer price has left room for long-term gains for investors,” said Chief Financial Officer Joseph Lee at the listing ceremony today. “We don’t have any financing need in the short term.”
The company, based in Jinzhou city in northeastern China, produces mainly lubricant additives and specialty fluorochemicals, according to its website. It supplies Chinese refiners including PetroChina Co. (857) and China Petroleum & Chemical Corp. (386), the website shows.
Tianhe Chemicals will continue to expand operations in China and overseas markets, and maintain a good relationship with PetroChina and China Petroleum, Lee said.
JPMorgan Chase & Co. (JPM:US) quit working on Tianhe Chemicals’ initial public offering earlier this year after questions arose over Joyce Wei, a former JPMorgan employee whose father is Tianhe Chemicals Chairman Qi Wei.
To contact the reporters on this story: Aibing Guo in Hong Kong at firstname.lastname@example.org; Fox Hu in Hong Kong at email@example.com
To contact the editors responsible for this story: Andrew Hobbs at firstname.lastname@example.org Iain Wilson