Turnover soars as Cathay takes off
En resumen
Cathay Pacific Airways made a strong stock market debut, accounting for $446 million in turnover and closing at a 33% premium over its offer price, despite a general decline in the Hang Seng index.
Resumen generado por IA
Por qué importa
Cathay Pacific Airways conducted an initial public offering of 226 million shares in April 1986.
Cathay Pacific Airways had a memorable take-off in the stock market yesterday, accounting for a massive $446 million worth of turnover, more than the combined value of all other shares traded.
The action in the rest of the market was strictly pedestrian, however, as the excitement over Cathay failed to spill over to other shares and the Hang Seng index dropped 27 points.
In volume terms, 86.6 million Cathay shares changed hands in their trading debut, equivalent to more than 38 per cent of the 226 million shares offered to the general public last month.
And Cathay’s $5.15 closing represented a hefty 33 per cent premium on the $3.88 offer price.
However, the closing figure came as no surprise, since grey market prices ranging from $4.80 to $5.50 had been quoted over the last several weeks, and brokers had been forecasting the fresh trades yesterday would be in a $5 to $5.40 band.
Preguntas abiertas
- What factors contributed to the decline of the Hang Seng index on the same day?
