Urban cowboy

17 Feb 2022 By Robyn Mak Follow @mak_robyn

Huitongda mainly sells electronics and fertiliser to wholesalers in rural areas. It’s a low-margin and simple business compared to the expansive shopping empire run by its large backer. Amid the tech rout, the $3 bln company’s Hong Kong stock sale ticks some of the right boxes.

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Chinese e-commerce company Huitongda Network raised HK$2.2 billion ($282 million) after pricing its Hong Kong initial public offering at the bottom of a mooted price range, IFR reported on Feb. 14, citing unnamed sources. The company sold 51.6 million shares, around 9.2% of the enlarged share capital, at HK$43 each, implying a market capitalisation of HK$24.1 billion ($3.1 billion).

Six cornerstone investors have committed $150 million.

The shares are scheduled to start trading on Feb. 18. CICC, Citigroup and China Renaissance are the joint sponsors.

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