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Smartphone maker Xiaomi's shares open 2.9 percent down on debut in Hong Kong

Reuters  |  HONG KONG 

(Reuters) - Chinese maker Corp's shares dropped 2.9 percent on debut in on Monday, in a blow to investor sentiment for the tech sector as a raft of peers line up their own listings in the city.

priced its initial public offering (IPO) at HK$17 per share, the bottom of an indicative range, raising $4.72 billion in the world's biggest in four years.

The shares touched a low of HK$16.50 in opening deals on Monday.

Xiaomi's listing comes at a delicate time for Hong Kong's stock market, with the benchmark Hang Seng index falling 2.7 percent last week and 5.8 percent this year as investors fret over escalating trade tensions between the and

The Sino-U.S. trade dispute has roiled financial markets including stocks and currencies, and the global trading of commodities from soybeans to coal over the past several weeks.

The weak pricing values the firm, which also makes and gadgets, at about $54 billion, almost half its original $100 billion ambition earlier this year.

Xiaomi's float failed to attract strong interest among investors with the gathering demand that was only 9.5 times the number of shares on offer, according to its filing on Friday.

By contrast, Literature Ltd, the arm of Chinese gaming and firm Tencent Holdings, late last year raised $1.1 billion for its Hong Kong IPO amid heavy demand, with the being 625 times oversubscribed.

(Reporting by Julie Zhu; Writing by Sumeet Chatterjee; Editing by Muralikumar Anantharaman)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, July 09 2018. 08:39 IST