July 13, 2017 2:30 pm JST

Foxconn parts unit lands on Hong Kong market

FIT Hon Teng opens 6% above IPO price

NORIKO OKEMOTO, NQN staff writer

Hong Kong stock exchange

HONG KONG -- Electronic component maker FIT Hon Teng debuted on the Hong Kong stock exchange on Thursday, drawing keen investor interest thanks to its better-known parent: Taiwanese contract manufacturer Hon Hai Precision Industry, or Foxconn Technology Group.

The stock hit the main board at 2.87 Hong Kong dollars, 6.29% above the initial public offering price of HK$2.70. Foxconn's name recognition, coupled with strong market conditions, helped drive the price up to HK$3.02 at one point.

The electronic connector and cable maker floated 990 million shares in the IPO, raising HK$2.53 billion ($323.98 million). FIT Hon Teng plans to put the proceeds toward boosting output of parts for communications equipment and mobile devices.

Foxconn will retain about 80% of the subsidiary's shares.

In the year to December 2016, FIT Hon Teng made $2.88 billion in sales, up 24% from a year earlier. Its net profit slipped 5% to $168 million.

Two other new stocks landed on the Hong Kong market on Thursday: Tomo Holdings, a Singaporean supplier of auto interior parts, and My Heart Bodibra Group, a Hong Kong lingerie maker. These companies listed on the board for startups.

Tomo Holdings opened at its IPO price, while My Heart Bodibra beat its offering price.

Asia300

Hon Hai Precision Industry Co., Ltd.

Taiwan

Market(Ticker): TAI(2317)
Sector:
Industry:
Electronic Technology
Computer Peripherals
Market cap(USD): 67,371.25M
Shares: 17,328.73M

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