Management of Hong Kong retail forex broker KVB Kunlun Financial Group Ltd (HKG:6877) probably had other ideas when they decided to move the company’s share listing from the HKEX’s Growth Enterprise Market (or GEM), Hong Kong’s version of the LSE’s AIM market, to the HKEX Main Board.
KVB Kunlun saw its shares tumble by 18% on Monday December 18, its first day on the Main Board, on fairly high trading volume of 5.5 million shares. KVB closed at HK$0.66 per share, down from Friday’s last close on the GEM of HK$0.80.
KVB shares had been steadily trading up since late August when the company announced its plans to move the listing. The run-up was in part due to the expectation that the Main Board listing would bring more value to KVB shareholders, but also due to improved results at KVB, including record Q3 revenues of HK$181.5 million (USD $23 million), up 38% from Q2’s HK$131.5 million.