1259.HK is rated neutral by Kaiji Securities, and the Chinese provider of child care products priced the offering at HK $2.60, close to the low end of the guidance price range of HK $2.51 to HK $3.76. The market reacted modestly to its initial public offering, with the retail offering being 27.7 times oversubscribed. Kaiji Securities said both revenue and net profit increased significantly during the tracking period. In the three years to fiscal 2010, the company's net profit grew at a compound annual rate of 41.5%, higher than the market average. However, the stock trades at about 18 times fiscal 2011 earnings, on a par with its peers, such as 1698.HK. As a result, the frog prince's valuation is not very attractive.

The stock closed down 2.7% at HK $2.53 in the dark market on Thursday.