Foxconn parts unit lands on Hong Kong market
FIT Hon Teng opens 6% above IPO price
NORIKO OKEMOTO, NQN staff writer
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.