Strong demand for mainland internet firm's IPO causes flood of margin-loan orders
Hot demand for Alibaba.com's shares helped push the Hong Kong dollar to a three-year high yesterday, as punters piled into the mainland's largest internet initial public offering.
'The company has a well-known brand name and its market penetration is remarkable,' said Ben Kwong Man-bun, the chief operating officer at KGI Securities. 'Investors think there will be upside potential.'
KGI, Phillip Securities and Sun Hung Kai Securities said they saw huge demand for shares of the mainland's biggest business-to-business website on the first day the offering was opened to the public.
The Hong Kong dollar touched HK$7.75 to the US dollar, the upper limit of the trading band introduced in 2005, partly as investors bought the local currency to invest in Alibaba and other share offers in the city.
Investors are seeking new share offers that provide exposure to the booming mainland economy, the fastest growing in the world. The company on Monday raised its offer price almost 13 per cent to a maximum of HK$13.50 a share.
