SHANGHAI Jan 17 Shares of Neway Valve (Suzhou) Co Ltd, a major valve maker, jumped 20 percent in its Shanghai debut on Friday, the first mainland China listing after a year-long moratorium.
The strong investor appetite bodes well for the 50 or so firms that have received approval to list on the Shanghai and Shenzhen stock exchanges and comes as the securities regulator steps up its oversight of IPOs.
In early morning trade, shares of Neway Valve traded at 21.19 yuan, up from its IPO price of 17.66 yuan. Under the new listing rules, shares are allowed to rise or fall up to 20 percent at the open from the IPO price.
The company raised 1.46 billion yuan ($240 million) in its IPO.
China Securities is the lead underwriter of the deal. ($1 = 6.0557 Chinese yuan) (Reporting by Shanghai Newsroom; Editing by Kazunori Takada and Edwina Gibbs)