Shares of Magnum Entertainment Group Holdings (HKG:2080), a Hong Kong-based nightclub and disco operator that went public at an offer price of HK$1.50 ($0.19), more than doubled to as high as $3.21 on its first day of trading Thursday, Bloomberg reported.

Magnum’s initial public offer, or IPO, which was oversubscribed more than 1,200 times according to the South China Morning Post, is reportedly the first by a nightclub operator in Hong Kong, and paves the way for a new business model for similar establishments coping with the city’s high rents.

Chairman Yip Mow Lum owns 72 percent of the company after the IPO, Bloomberg reported citing IPO documents, adding that the company’s offer was one of the city’s most popular among individual buyers. And, in the last 12 months, according to Bloomberg, three companies rose more than 100 percent on their trading debuts in Hong Kong after IPOs worth at least $10 million.

Hong Kong Nighttime
Neon lights from skyscraper and 1997 Handover signs cast a glow over Hong Kong's Victoria Harbour and the extension of the Hong Kong Convention and Exhibition Centre (R, foreground) in this long exposure zoom photograph. Picture taken June, 21 1997. Photo: Reuters

However, whether the success of the IPO translates into long-term success for a business could be hard to judge, the South China Morning Post reported, citing analysts who noted that Milan Station, a second-hand high-end luxury goods outlet, began contemplating being taken over last month, less than three years after going public in May 2011.

Magnum operates three clubs in Hong Kong’s Central neighborhood and is planning to open a fourth, reports said.

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At about 1:16 p.m. local time (12:16 a.m. EST), the company’s stock was trading up 5.38 percent at $2.94.