Bawang International (Group) Holding Limited (Bawang International), a domestic personal care products maker, started trading on HKMB on Jul. 3, 2009.
Bawang International soared 30% to HK$3.1 per share at midday with a turnover reaching around HK$2.32B, topping on H-share market.
Besides herbal shampoo, Bawang International also produces and distributes a wide range of home and personal care products including shampoo and toothpaste. According to the prospectus, as of mid-2008, Bawang International has a 7.6% market share on Chinese shampoo market, lagging behind P&G's Rejoice, Head & Shoulders and Pantene, which held a combined market share of 37.2%.
Bawang International issued 700M new shares with an expected price range of HK$1.95-HK$2.38 per share. Calculated by the top end of the range, the PE multiple of the Company in 2009 stands at 18. The Company plans to use the proceeds to expand production lines and distribution network.
HSBC Bank and Morgan Stanley are sponsors of the listing.
Translated by Lisa Zhang
