Shares of Italian yacht builder Ferretti sail high on Hong Kong debut

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A Ferretti stand sits among yachts on display at the Singapore Yacht Show on Sentosa island April 25, 2015. REUTERS/Edgar Su

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HONG KONG, March 31 (Reuters) – Shares in Italian yacht builder Ferretti SpA (9638.HK) soared 1.2% on their Hong Kong debut on Thursday after raising $244 million at a time when the Asian financial center saw a drop in the value of initial public offerings (IPOs) this quarter.

The stock, which opened at HK$23.05 per share, traded as high as HK$23.15 apiece early in the trade, up from the offer price of HK$22.88. This compares to a 0.8% decline in the benchmark Hang Seng Index (.HSI).

The luxury yacht builder said on Wednesday it pocketed HK$1.77 billion ($226 million) after pricing the IPO near the bottom of its target range.

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Ferretti, whose clients include British fashion designer Jimmy Choo and former football star David Beckham, is a market leader in yachts measuring at least 80ft, with prices ranging from 4 million euros (4.47 million dollars) to more than 20 million euros.

Braving choppy markets, Ferretti sold 83.58 million shares, or 25% of its expanded share capital, in the global offering, raising funds to expand its brand portfolio and strengthen services to its boat owners.

Hong Kong’s supply share was oversubscribed 1.07 times, while demand for the international supply totaled more than double the amount on sale, it said.

The value of Hong Kong IPOs in the first quarter fell to $837.4 million from $11 billion a year ago, according to Refinitiv data. Read more

Italian investors led by Milan-based asset manager Banca Mediolanum (BMED.MI) took part in Hong Kong IPOs by Ferretti, which saw Chinese investors take the lion’s share, a person familiar with the matter said. case. Read more

Chinese companies Sunshine Insurance, Sanya Development Holdings, Hainan Free Trade Port Fund, Hainan Financial Holdings and Haifa Holding acted as lead investors taking 53% of the offering, Ferretti said.

Ferretti, whose brands include Riva, Pershing and Wally, is owned by Chinese conglomerate Weichai Group.

($1 = HK$7.8273)

($1 = 0.8953 euros)

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Reporting by Donny Kwok; Editing by Muralikumar Anantharaman and Sherry Jacob-Phillips

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