Shares of Shanghai Film Group leaped by more than 40% on Wednesday the first day that they were traded following an IPO.
The shares were listed on Shanghai’s A-share market and raised $136 million (RMB908 million). They were priced at RMB10.19 in the offering.
On the first day of trading they rose to RMB14.67. In early trade on Thursday they rose a further 10% to RMB16.14 apiece, triggering the daily circuit breaker and halting trade in the stock for the rest of the day.
The company is a subsidiary of state-owned conglomerate Shanghai Media Group. It operates as a producer, distributor and cinema owner.
“After listing, our market competitiveness and distribution capacity will be strengthened. The state-owned companies have said goodbye to historical problems and contradictions and worked our way out of difficulties. We now stand ready to start a new round of competition with other active film makers,” said SFG president Ren Zhonglun.
The SFG listing follows closely after the IPOs of two other SOEs, China Film Corporation and Omnijoi Media, which listed last week in Shenzhen. Both issues were rapturously received by investors. The online tranche of Omnijoi’s share sale was more than 1,900 times subscribed.
CFC was floated at RMB8.92 per share. The shares were again limit up in Thursday trade at RMB25.01, a 180% gain in a week. Omnijoi shares were also halted Thursday after another 10% gain, hitting RMB20.44. That represents a gain of 209% since their sale at RMB6.62.