Market

Nongfu Spring Lists on Hong Kong Stock Market, Shares Spike 85%

Published

4 Monaten ago

September 8, 2020

Nongfu Spring raised over $1.1 billion through its IPO which was oversubscribed 1148 times. Its listing on the Hong Kong stock market makes it one of the biggest listings of 2020.

On Tuesday, September 8, the Chinese bottled water giant Nongfu Spring made a debut on the Hong Kong stock market. The company received a spectacular response from investors with share price surging 85% in early trading.

Nongfu Spring has been “one of the hottest” Initial Public Offering (IPO) ever on the Hong Kong stock market. The IPO price for the stock 21.50 HKD allowing the company to raise $1.1 billion. Investors rushed during the IPO period as the public offering was oversubscribed 1,148 times. During the opening hours on Tuesday, the stock opened at 39.80.

The company’s strong fundamentals and high-profit margins make it a lucrative bet for investors. On the other hand, the timing for IPO proved beneficial for Nongfu Spring. Since tech and internet stocks have been already trading at high valuations, new investors were waiting for new opportunities in the market.

During its IPO, Nongfu Spring sold over 388 million shares. Some of its top investors include Singapore sovereign wealth fund GIC, hedge fund Coatue, and fund manager Fidelity.

Zhong Shanshan, Nongfu Spring’s low-profile billionaire founder currently controls 9.4 billion shares i.e. 84 percent of the company. He owns a 17% direct stake in Nongfu while the rest 67% comes through his wholly-owned subsidiary Yangshengtang.

Chinese Stocks Are Hot

Experts believe that there’s a lot of opportunities ahead in the Chinese stock market. Independent analyst Fraser Howie said that since the interest rates globally have been remaining low, investors are now turning to stocks. Speaking to CNBC, Howie said:

“Ultimately, half the world is operating on negative rates and half of the rest of them is operating on zero rates, and governments keep printing money. The world is awash with money, Chinese stocks are hot.”

Nongfu Spring is one of the recent examples of how investors are eager to pour their money in quality stocks. apart from bottled water, Nongfu Spring also produces other packaged drinks like coffee, tea, and fruit juices. The company has been enjoying the largest share in China’s packaged drinking market over the last seven years.

Last year in 2019, Nongfu Spring recorded revenue of 24.02 billion yuan, surging over 17% from the previous year. However, during the first half of 2020, its revenue sunk as a result of the COVID-19 outbreak.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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Related Topics:Hong Kong Lists Market Nongfu Shares Spike Spring Stock

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Grayscale’s AUM Hits $19B, Up from $16.4B Announced Week Ago

Published

13 Minuten ago

Dezember 29, 2020

While it may be too early to project the possible performance of Grayscale in 2021, the spate of patronage the company recorded in the last two quarters of 2020 looks quite inspiring.

In what confirms the continued embrace of Bitcoin (BTC) and altcoins by institutional investors and the big-money clients, Grayscale’s total Assets Under Management (AUM) has been reported to top $19 billion, a significant uplift from the $16.4 billion reported a week ago. According to a report by CoinDesk, Grayscale hit this AUM milestone on December 28, and Grayscale’s Bitcoin Trust holds by far the largest chunk of the total assets at $16.3 billion.

The recent rally of Bitcoin to new highs as recorded in the past days started as a chain reaction that took its precedent months ago when Wall Street firms and institutional investors began betting big on Bitcoin. The investment made by the likes of MicroStrategy Incorporated (NASDAQ: MSTR), Square Inc (NYSE: SQ), and PayPal Holdings Inc (NASDAQ: PYPL) did not just help put Bitcoin in the limelight through mainstream media, it also prompted the embrace of the digital assets by other firms.

With this chain reaction, the price of Bitcoin continued to soar in response to boosted demand for the coin, and institutions like Grayscale that serves institutional investors benefited from this new demand, and hence, the continued increase in the firm’s AUM. Besides BTC, Grayscale’s Ethereum (ETH) AUM is now worth $2.1 billion, while the bulk of smaller holdings in Litecoin (LTC), XRP, and ZCash amongst others helped Grayscale’s total AUM to reach the new milestone.

Grayscale’s AUM May See More Boost in 2021

While it may be too early to project the possible performance of Grayscale in the coming year 2021, the spate of patronage the company recorded in the last two quarters of 2020 makes the case for improved performance provided the tempo is sustained.

Just as has been noted earlier, the continued embrace of cryptocurrency assets by highly liquid companies will continue to have a positive reaction on the price of Bitcoin, and by extension, this will even make more people pick interest in BTC. As a relatively young asset class, Bitcoin and altcoins have tremendous room to grow as the adoption rate is still not optimized owing to certain regulatory provisions in most countries, Grayscale and other hedge funds have enough room to compete for new clients entering the space.

With Grayscale been among the institutions at the forefront of helping to drive the acceptance of BTC, ETH, and other digital currencies, enjoying the dividends of its works through impressed AUM figures does not come as much of a surprise.

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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Market

eToro Said to Be in Talks With Goldman About Possible $5B IPO: Report

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58 Minuten ago

Dezember 29, 2020

The crypto trading/investment management platform is also considering the possibility of a merger with a special purpose acquisition company.

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Altcoin Rally Dimming Bitcoin’s Shine, Polkadot Gains 34% in One Week

Published

2 Stunden ago

Dezember 29, 2020

Polkadot (DOT) saw daily gains of 22.5% wrapping up an impressive week with an almost 34% rise in its value.

Bitcoin bullish run looks to have come to a halt amidst an altcoin rally which has seen relatively lower coins put up impressive performances in the past few weeks. Bitcoin dominance is gradually fading as many experts believe the biggest digital coin is backing down as some top altcoin are showing strong “moves” or signals.

Bitcoin hit an all-time high over the weekend, the third time its price has done so in just over 2 months. The price of the biggest digital coin touched $28,400 on December 27, before a lightning drop took it to $27,000 just hours of that incredible feat.

Bitcoin failed to hold onto the $27,000 mark as its price further dropped to $26,000 a day after and is now testing lower levels centered on $26,000 as immediate support. Reports from crypto exchanges revealed BTC/USD trading at lows of $25,830 during the early hours of December 29.

While Bitcoin has seen red over a couple of days, some altcoins are putting up impressive numbers, giving off signals of a strong altcoin rally. Despite XRP’s current issues, the altcoin market is showing glimpses of its glory days as some digital coins are poised to see major gains over the next couple of weeks. Ethereum (ETH) is at the forefront of the rally, with its price climbing above $700 for the first time since May 2018.

Polkadot (DOT) also saw daily gains of 22.5% wrapping up an impressive week with an almost 34% rise in its value. The coin is now the seventh-largest token by market cap. Kusama (KSM), a cousin of Polkadot, also saw its price gain 46% last week, pushing its price from $43.1 to $63. The digital token is currently trading at $56 but experts are adamant a breakout above $65 is possible as the token has rebounded off the 20-day exponential moving average ($50.90)

Speaking on the possibility of a long term altcoin rally, analyst Van de Poppe stated that altcoins are next in line to see greens. He added that the next “impulse wave” on Bitcoin next year should be able to take the market to $40,000 or $50,000, but until then, the possibility of a continuance altcoin rally is very much likely.

Although many factors could be in play with regards to the latest Bitcoin price dip, it’s recent fallout with Ripple’s XRP leads the way. Ripple was hit with a lawsuit from the United States Security and Exchange Commission (SEC) and subsequently suffered drops that left its price in a pit. XRP, the fourth-largest cryptocurrency by market cap, is now trading at $0.20 as news broke that Coinbase, a major US cryptocurrency exchange has decided to suspend its trading from next month.

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Crypto fanatic, writer and researcher. Thinks that Blockchain is second to a digital camera on the list of greatest inventions.

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