Thursday, March 29, 2012

Strong trading debut for Cordlife

SINGAPORE : Singapore's first initial public offering (IPO) for this year, Cordlife, made a strong debut on the Singapore Exchange on Thursday.

Shares of the cord blood and tissue banking service provider surged at its opening trade and ended 37.4 per cent above its IPO price of 49.5 cents.

Cordlife was also the day's second most actively traded stock, with some 173 million shares changing hands.

The stock is also among the top five best performing IPOs over the last year.

Cordlife has over 35,000 cord blood units in Singapore and Hong Kong and plans to use the capital raised to expand its business.

Cordlife's IPO was priced at a price earnings ratio of about 8.8 times.

Market players said the upbeat showing by Cordlife may spur other companies to consider relaunching their IPOs after holding off plans.

Cordlife raised close to S$30 million from its IPO.

In 2011, only seven out of 24 IPOs posted gains on their first trading day.

Offshore and gas engineering company IEV topped the list with a whopping 205 per cent gain on its trading debut.

View the original article here

Source From Channel News Asia

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