Shares of Italian yacht builder Ferretti end flat 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) ended flat on their Hong Kong debut on Thursday after raising $244 million at a time when the Asian financial hub experienced a drop in the value of initial public offerings (IPOs).

The stock opened at HK$23.05, hit a high of HK$23.75 and closed at an intraday low of HK$22.85, down 0.1% from the offer price of 22 HK$.88 each, with 8.02 million shares traded.

This compared to a 1.1% decline in the benchmark Hang Seng Index (.HSI).

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“(The company) is unique, but investors don’t know much about this segment and they aren’t keen to get started,” said Steven Leung, sales director at UOB Kay Hian.

“A flat performance is more or less expected while the appetite for big IPOs isn’t particularly strong at the moment.” Read more

The yacht builder, which is owned by Chinese conglomerate Weichai Group and whose brands include Riva, Pershing and Wally, said on Wednesday it had pocketed a net HK$1.77 billion ($226 million) after priced the IPO near the bottom of its target range.

Ferretti is a market leader in yachts that are at least 80 feet, with prices ranging from 4 million euros ($4.5 million) to more than 20 million euros. Among his clients are British fashion designer Jimmy Choo and former football star David Beckham.

The group sold 83.58 million shares, or 25% of its expanded share capital, under the offer. Hong Kong’s share was oversubscribed 1.07 times, while demand for the international offering totaled more than double the amount on sale, it said.

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

($1 = HK$7.8273)

($1 = 0.8953 euros)

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

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