Fu Shou Yuan International Group Ltd., a company which develops and operates graveyards in Chinese cities, arranged an initial public offering in Hong Kong, according to the Hong Kong Stock Exchange.
Fu Shou Yuan sold 500 million shares at HK$3.33 each. On first trading day the stocks of Fu Shou Yuan rose 45%, up to HK$4.82. During trades the quotes reached HK$5.54. The company raised HK$1.55 billion (about $215 million).
The revenue of the company has risen 17% for the last three years, and in 2012 it was 480 million yuan (about $78 million). The investors’ interest for the company might be amid favourable forecasts in the industry on the whole. In particular, according to Chinese Global Times, citing Euromonitor research, for the next four years the volume of the industry will double and it will be 100 billion yuan (about $16.5 billion).
The lack of territory for cemeteries is observed in China; thus, the price of fields owned by the developers of graveyards is rising. Consequently, the investors may regard Fu Shou Yuan as a major participant of the real estate market.