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Nikkei Markets

China Literature Exercises Over-Allotment Option After Shares Surge In Hong Kong

By Carrie Chen
Nikkei Markets
HONG KONG (Nov 10) -- Online publishing and e-book company China Literature said an over-allotment option for its initial public offering was fully exercised after the stock nearly doubled amid strong demand following its listing this week.

The company, majority owned by social media and gaming major Tencent Holdings, raised $1.1 billion from a 151.4 million-share IPO last week. It jumped 86% in its trading debut on Wednesday.

The issue had an over-allotment option of up to 15% of the shares offered. China Literature said it will not receive any net proceeds from the over-allotment, which will go to existing shareholders Laoshe and TB Partners.

China Literature, which had initially set aside 10% of the IPO for Hong Kong investors, saw that portion oversubscribed by as many as 625 times. It said the 136.23 million shares reserved for international investors were also "very significantly" oversubscribed, according to the company.

China Literature's shares were down 2.2% at HK$101.70 in Hong Kong morning trade on Friday. The benchmark Hang Seng Index was 0.04% higher at 29,149.28.
- By Carrie Chen;; +852 3960 5102
- Edited by Suzannah Benjamin
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- Copyright (c) 2017 Nikkei NewsRise Asia Pte Ltd.

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