Morning Report: Shares of Foxconn Industrial Internet’s stock rose 44 percent in their debut.
In its debut in China, Foxconn Industrial Internet’s shares rose the maximum-allowed 44 percent in their first day of trading. According to state-sponsored media group Xinhua, the firm’s shares rose to a value of around $3.10, giving the firm a market capitalization of around $61 billion.
(Foxconn Industrial Internet is a subsidiary of Foxconn Technology Group, a company famous for its work with high-tech manufacturing and minor role in US politics. Some financial metrics are available here, including the firm’s cash flow, balance sheet, and income statement.)
That the company’s shares did well is not a huge surprise given demand. Per Bloomberg, there was “demand for 290 times the shares for sale,” perhaps due in part to the fact that the “IPO was priced at about 17 times earnings, a discount of as much as 43 percent to its peers in Shanghai.”
So it was a bargain and a huge offering and, now, a huge success.
We’ve paid less attention to the Foxconn Industrial Internet offering as it was not listed domestically, which is our usual focus for technology debuts. But given the scale of the result, we’d be remiss to not at least bring it up. The IPO was the largest since Alibaba’s.
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