Shares of China’s JL MAG Rare-Earth Co. dropped as much as 17% in their Hong Kong debut after being sold at the bottom of the marketed range in what is the biggest offering so far this year in the Asian financial hub.
The producer of magnetic rare-earth materials slid to as low as HK$28 ($4.83) on Friday. That’s versus an offer price of HK$33.80 apiece in the sale that raised HK$4.24 billion. The Chinese company is already listed in Shenzhen.
JL MAG’s is the first offering to raise more than US$500 million ($670.5 million) in Hong Kong this year as China’s crack down on several private enterprises plus the prospect of rising interest rates cast a shadow over deals in the Asian financial hub. The slow 2022 start contrasts with a busy kickoff in 2021, when 16 companies priced near US$8 billion worth of shares last January, Bloomberg data show.