STOCKWATCH: iLink sharply higher against issue price on GEM debut

HONG KONG (AFX-ASIA) -iLink Holdings Ltd shares were sharply higher against the issue price on their first day of trading on the GEM board, dealers said. At 10:53 am, iLink was trading at 1.52 hkd, up 18.7 pct from its issue price of 1.28 hkd, while the GEM index was down 1.46 points at 285.90. The Hang Seng Index was down 40.66 points at14,168.29. "Before the shares were traded this morning, the share price had already risen to 1.48 hkd in the grey market from what I've heard," said Kenny Tang, associate director of research at Tung Tai Securities. "iLink is able to generate steady revenue from its data centres and is expected to make a profit in the coming years," he added. In addition, Tang said, iLink's shareholders such as PCCW, Henderson Investment and Dell are all well-known names and this reinforces investors' confidence in the company. However, he cautioned agaisnt chasing iLink's share price much higher as new issues are normally very volatile in their first few days of trading. "I'd suggest investors hold back until the price steadies," Tang added. iLink is primarily involved in the provision of Internet application solutions and operates two data centres in Hong Kong and one in San Jose, California.

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