Monday, June 27, 2011

Prada's IPO Debut? Eh.

A souvenir Prada bag is offered to the Hong Kong Exchange during
the debut of Prada SpA at the Hong Kong Stock Exchange June 24, 2011.
(Photo: Bobby Yip/Reuters)

Good thing Prada lowered expectations.

Prada, the first Italian company to list in Hong Kong, ended its first day of trade at 39.60 Hong Kong dollars (US$5.08), 0.3% higher than its IPO price of HK$39.50, after hitting an intraday high of HK$40. The shares stayed afloat as the Hang Seng Index staged a rebound, climbing 1.9%, although the benchmark index is still down 6.4% this month on growing worries about the European debt crisis and concerns about slowing Chinese growth.

"The rebounding market today helped the debut performance of Prada," said Ben Kwong, associate director of KGI Asia Ltd.

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