Bubble tea maker Guming slumps 10pc in Hong Kong share debut

Shares of Chinese bubble tea maker Guming (1364) slid by as much as 10 percent in their debut on the Hong Kong Stock Exchange on Wednesday, as retail investors sold the stock, casting a shadow over future bubble tea listings in the city.

The company sold 182.4 million shares at HK$9.94 each, the top of the price range indicated to investors when the deal launched last week.

Guming stock began trading at HK$10 but fell as much as 10.2 percent to HK$8.93. The stock close at HK$9.3, still down 6.4 percent from the offer price of HK$9.94. In contrast, the Hang Seng Index was up 2.6 percent while the Hang Seng Consumption Index was also up 1.8 percent.

The retail tranche of the IPO was 195 times oversubscribed, which meant the portion of the deal allocated to those investors was increased from 10% to 43.5%, the filings showed.