Key Takeaways:
Tong Ren Tang Care (02667.HK) closed at HK$4.64 on the gray market, down 15.6% from its listing price, ahead of its Hong Kong Main Board debut on 7 July.
The gray market saw volatile trading, with the stock opening flat at HK$5.5 before climbing 9.1% to an intraday high of HK$6, according to PhillipMart data. It later sank to a low of HK$4.51 before settling at HK$4.67, representing a 15.1% decline from the listing price on that platform. Excluding handling fees, the book loss amounted to HK$415 per board lot of 500 shares.
On the Futu gray market platform, the stock opened flat at HK$5.5 with 5.57 million shares changing hands and turnover of HK$27.46 million. The book loss there was HK$430 per board lot, excluding fees.
The gray market weakness suggests tepid demand for the traditional Chinese medicine spin-off ahead of its formal listing. Tong Ren Tang Care, a subsidiary of Beijing Tong Ren Tang, operates a chain of Chinese medicine clinics and healthcare centers.
The pricing gives the company a market valuation that will be tested when trading begins on 7 July. Investors will watch first-day trading volume and price action to gauge institutional appetite for the stock in a market that has seen mixed IPO performance this year.
This article is for informational purposes only and does not constitute investment advice.
