(Reuters) - Shares of China-focused "daigou" retailer AuMake International Ltd <AU8.AX> more than doubled in their trading debut on Thursday as investors expect growing demand for Australian products from Chinese overseas shoppers.
AuMake's shares rose as high as A$0.185, compared with the offer price of A$0.08 per share.
Daigou is a channel of commerce where an entity outside China purchases products for customers in mainland China in a bid to avoid high import duties.
AuMake, which aims to connect Australian suppliers directly with daigou and Chinese tourists, had offered 50 million shares to raise A$4 million ($3.15 million) with the option to raise up to a further A$2 million.
The company raised A$6 million as capital for its debut and intends to expand its Chinese tourist retail network, as well as acquire brands which it believes are popular in China, it said in a statement.
Several manufacturers in Australia and New Zealand use daigou as jumping point into the Chinese market, seeing it as a cheaper method than exporting their goods directly.
New Zealand's a2 Milk Co Ltd <ATM.NZ>, which places informal daigou agents at the heart of its distribution strategy, is one such example. The company logged a record profit in 2017 on soaring demand for its products in China.
(Reporting by Ambar Warrick in Bengaluru; Editing by Stephen Coates and Edwina Gibbs)
