Lion Travel shares soar after company debuts on TWSE
CNATAIPEI--Shares of Lion Travel Co., one of Taiwan's largest travel agencies, rose sharply Tuesday, the first trading day of the stock on the Taiwan Stock Exchange, amid optimism toward its business outlook, in particular in the China market, dealers said.
September 25, 2013, 12:08 am TWN
Lion Travel is the first tourism stock listed on the main board so far this year. The company is the third travel agency to list its shares in the local market after Phoenix Tours International Inc.'s listing on the main board in October 2011 and Star Travel Corp.'s listing on the over-the-counter market in February 2012.
Shares of Lion Travel gained 23.01 percent from its issue price of NT$73.00 (US$2.46) to close at NT$89.80, with 3.96 million shares changing hands, while the weighted index on the Taiwan Stock Exchange ended up only 0.07 percent at 8,299.12 points.
The stock attracted strong buying, opening at the day's high of NT$98.00 before profit taking set in to erode the earlier gains to some extent toward the end of the session, the dealers said.
As a newly listed stock, Lion Travel's fluctuations are not limited by the maximum daily upward and downward 7 percent in its first five trading sessions.
Prior to Tuesday's TWSE listing, Lion Travel had been listed as an emerging stock since Oct. 23, 2012. Under the local securities listing rules, a company has to list its shares on the emerging stock market for no less than six months before deciding to launch a listing on the main board or the over-the-counter market.