Shares of Fosun Tourism Group fell 7.31% to HK$14.46 in mid-afternoon trading, hours after its Hong Kong debut Dec. 14.

The tourism unit of Chinese conglomerate Fosun International Ltd. intended to raise HK$3.21 billion through its IPO and began trading at the lower end of its range at HK$15.60.

The company said its shares were undersubscribed at the close of applications Dec. 6.

Fosun Tourism intends to use about HK$609.7 million, or 19%, of the net proceeds to expand the company's existing business; about HK$1.67 billion, or 52%, to develop its Lijiang and Taicang projects, including the acquisition of land use rights; about HK$834.3 million, or 26%, to repay part of the company's bank loans; and about HK$96.3 million, or 3%, for working capital and general corporate purposes.