Hong Kong’s second-hottest IPO delivers 48% debut gain after 5,678 times subscription

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IPO of Chinese auto-parts maker ranks second to Kwai Chung’s 2018 offering as the most coveted by Hong Kong retail investors

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Pedestrians walk past a sign showing the numbers of the Hang Seng Index in September 2024. Photo: AFP

Yulu AoandAileen Chuang

Published: 9:54am, 8 Nov 2024Updated: 5:10pm, 8 Nov 2024

APT Electronics, a Chinese lighting devices supplier, jumped 16 per cent in Hong Kong after its initial public offering (IPO) raked in the second-highest subscription on record from local retail investors.

The shares began trading at HK$4.20 versus the IPO price of HK$3.61, according to stock exchange data. Gain accelerated to 48 per cent or HK$5.33 at the close of trading, valuing the entire company at HK$2.9 billion (US$368.4 million).

The Hang Seng Index fell 1.1 per cent, erasing an earlier advance of more than 1 per cent on the back of a rate cut. The Hong Kong Monetary Authority on Friday cut its base rate for a second time this year, in lockstep with the Federal Reserve’s overnight policy easing move.

Geely Auto, a key customer of APT Electronics, is a strategic investor. The carmaker’s founder Li Shufu also owns a personal minority stake.

Workers in APT Electronics lab in Nansha, China. Photo: Handout

Demand from retail investors was 5,678 times the number of APT Electronics shares on offer, prompting the IPO managers to increase the allocation to 19.32 million shares from 3.36 million shares. Kwai Chung’s IPO in 2018 holds the city’s IPO subscription record with 6,289 times.