SINGAPORE (Jan 22): For a few exciting days, it looked like LHN Group had unlocked massive value by simply getting its shares listed in Hong Kong.

The real estate management services company, which has been listed in Singapore since 2015, sold 42 million new shares at HK$1.90 each to Hong Kong investors late last year. Trading began in Hong Kong on Dec 29 and by Jan 4, its shares had rocketed to HK$4.81. But the big run was short-lived. By Jan 17, its shares had collapsed to HK$1.51.

Did LHN gain anything by listing in Hong Kong? Even after sinking to HK$1.51, the company is still valued at about 39.9 times its earnings in Hong Kong. In Singapore, where shares in LHN closed at 24 cents on Jan 17, the company has a market value equivalent to 37.3 times earnings. It is also worth noting that shares in LHN had run up nearly 19% over the last 12 months in Singapore, at least partly in anticipation of its Hong Kong listing.

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