Tencent Holdings' e-book unit China Literature saw its shares double in the Hong Kong debut on Wednesday, with the stock on track to show the biggest first-day gain for a large IPO globally this year.
China Literature's shares rose to as much as HK$110 ($14.1) in early trade, compared with the offering price of HK$55. The shares ended at HK$102.4 on Wednesday.
"As the first Tencent-controlled subsidiary tapping capital markets, China Literature has to perform well in the secondary market to set a good example for other Tencent units," said an investor who took part in the IPO, declining to be identified.
Co-CEO Liang Xiaodong told reporters after the opening ceremony that the stock's surge was a pleasant surprise.
"We will conduct M&As and forge strategic alliances... to stay ahead in our industry," he said.
The biggest e-book platform in China offers 9.6 million literary works from 6.4 million authors. Tencent began e-book publishing in 2004 and after an internal reorganization, formed China Literature in 2013.
Its IPO success comes as the number of technology offerings in Hong Kong is picking up. Online insurance group ZhongAn raised $1.5 billion in September in Asia's largest financial technology IPO. Its shares jumped 18 percent in their debut.
Razer Inc, a gaming hardware maker, will make its Hong Kong debut on Monday. It has priced its HK$4.12 billion IPO near the top end of its price range, IFR reported on Tuesday.
"[ZhongAn] gave people size and returns, so retail and high net worth individuals got excited. And that is being reflected in China Literature and Razer," said one banker involved in the China Literature deal, also declining to be identified.
