PT Merdeka Gold-DRS opened 24.8% below its listing price in gray market trading ahead of its June 26 Hong Kong debut. The stock traded between $20 and $22.74 across platforms, with combined turnover exceeding $14 million.
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PT Merdeka Gold-DRS slides 24.8% in gray market ahead of HK listing
PT Merdeka Gold-DRS (06228.HK) opened 24.8% below its listing price at $20 ahead of its June 26 debut.
The gray market weakness comes as China Galaxy Securities said Hong Kong stocks' fundamentals have confirmed an inflection point, though market confidence and fund flows have yet to align. The brokerage's assessment points to lingering caution among investors despite improving underlying conditions for the broader market.
According to Futu data, the stock last traded at $22.74, down 14.5% from the listing price, on volume of 439,700 shares and turnover of $9.17 million. PhillipMart data showed a similar trajectory, with the stock at $22.04, down 17.1%, on volume of 263,000 shares and turnover of $5.18 million. The discrepancy between the two platforms reflects the fragmented nature of gray market trading, where prices are indicative rather than binding and can vary across brokers.
The gray market performance implies a listing price of about $26.60, giving the Indonesian gold miner a market valuation that will be tested when regular trading begins. The weak opening suggests tepid demand for the depositary receipts, with first-day trading on June 26 serving as the next event for price discovery. Investors will watch whether the stock can recover toward its listing price or if the gray market discount points to a broader lack of conviction in new Hong Kong listings.
The pricing gives the company an enterprise value that will be measured against sector peers in the gold mining space. First-day trading on June 26 will test whether institutional demand materializes at the official listing or if the gray market's cautious pricing proves prescient. Hong Kong stocks have faced headwinds from global monetary policy uncertainty and China's economic recovery pace, factors that may weigh on investor appetite for new listings. The stock's performance in its first week of trading will provide a clearer picture of market reception for Indonesian resource companies seeking Hong Kong listings.
This article is for informational purposes only and does not constitute investment advice.
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