Shares of the online auto platform Yixin Group Ltd. closed 5.45% above their initial public offering (IPO) price on their first day of trading in Hong Kong on Thursday.
Yixin, which has attracted investors that include major Chinese internet firms Baidu Inc., Tencent Holdings Ltd. and JD.com Inc., provides auto loans and auto insurance, and also offers rental vehicles.
Its IPO, which raised $6.77 billion and was 560 times oversubscribed, is part of a recent slew of technology listings in Hong Kong that has attracted intense investor interest.
In September, ZhongAn Online Property & Casualty Insurance Co. raised HK$11.5 billion ($1.47 billion) after being 391 times oversubscribed. On Nov. 7, Tencent’s online publishing unit, China Literature Ltd., raised HK$8.33 billion in a 625-times-oversubscribed IPO.
Yixin’s shares, which were offered at HK$7.70 apiece, opened at HK$10 and rose as high as HK$10.18 on Thursday morning before falling to HK$8.12 at the close of trading. The company’s market capitalization by the end of the day was HK$50.96 billion.
Yixin is China’s largest online automobile transaction platform, according to its IPO prospectus, in which the company also said it plans to use its IPO proceeds to expand its offline auto dealership network and hire more information technology specialists, among other things.
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