Hong Kong isn’t particularly known for an expansive menu of world-class tech companies for stock investors to pick from. A notable addition got off to a good start on its debut today.
Shares in FIT Hon Teng, a subsidiary of Taiwan’s Hon Hai Precision, rose by 17%, closing at HK$3.15 compared with their offering price of HK$2.70. Hon Hai, better known by its trade name Foxconn, is one of the world’s largest electronics manufacturers and biggest suppliers of iPhones to Apple.
FIT Hon Teng has a 5.1% share of the global market for connectors in terms of revenue, according to the company prospectus. Sales rose to $2.88 billion in 2016 from $2.32 billion a year earlier, but net profit fell by 5% to $168 million. It benefits from ties to Hon Hai, which owns 79% of FIT Hon Teng.
Hon Hai is led by Terry Gou, who ranked No. 2 on the Forbes Taiwan Rich List published in the latest edition of Forbes Asia this month with a fortune worth $9.5 billion. (Click here for the full Taiwan Rich List.) Topping the Taiwan list was the Tsai family, whose fortune comes mainly from financial services.
Hon Hai, which trades in Taiwan, controls at least two businesses listed in Hong Kong—FIH Mobile, a manufacturer of handsets, and CircuTech, an IT service company.
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More Info: www.forbes.com