February 28, 2014 / 3:00 AM / in 4 years

UPDATE 1-Chinese pork producer Huisheng climbs 3 pct in HK debut

* Huisheng’s IPO follows strong debuts for Magnum, Honworld

* Pork industry giant WH slated for up to $6 bln IPO (Adds recent Hong Kong IPOs, Huisheng underwriter)

By Elzio Barreto

HONG KONG, Feb 28 (Reuters) - Pork producer Huisheng International Holdings Ltd climbed 3 percent in its Hong Kong trading debut, a solid but not heady start after mom and pop investors swamped its $31.7 million initial public offering.

The retail portion of the Huisheng IPO generated 2,188 times more orders than the shares on offer, the second-highest level of oversubscription in the city with investors eager to bet on rising demand for meat products in China.

That boded well for industry giant WH Group, formerly known as Shuanghui International Holding, which is slated for an up to $6 billion Hong Kong listing in April.

Huisheng shares initially rose as much as 13 percent before slipping back to HK$2.11, which compares with an initial public offering price of HK$2.05. The benchmark Hang Seng index was up 0.5 percent.

Attracted to companies that stand to benefit from booming consumer demand in Greater China, particularly those in niche fields, mom and pop investors have also snapped up shares in cooking wine maker Honworld Group Ltd and night club operator Magnum Entertainment Group Holdings Ltd‘s.

Thirteen companies have listed in Hong Kong so far this year, raising $3.7 billion, according to Thomson Reuters data.

With major economies picking up steam and companies chasing funds to tap into growth opportunities, advisory firm PwC estimates Hong Kong IPOs could raise $32.2 billion in 2014, the highest since 2010 and nearly double the 2013 tally of $17.1 billion.

Huisheng International offered 100 million new shares in the IPO, while its chairman, Ding Biyan, offered 20 million shares.

Cinda International Securities Ltd acted as sole global coordinator and bookrunner, with five other Chinese brokerages also helping to underwrite the deal.

Reporting by Elzio Barreto; Editing by Edwina Gibbs

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