The firm’s shares surged 45 per cent to HK$235 at the start of trading, versus the offer price of HK$162, before ending the day up 37.5 per cent at HK$222.80. The close valued the company at around HK$155.2 billion (US$19.9 billion). Its Shanghai-listed shares closed up 0.6 per cent at 263.50 yuan on Tuesday.
GigaDevice’s listing raised HK$4.68 billion (US$600 million) as the company issued 28.9 million shares. Retail investors subscribed for 542 times the number of shares allocated to them, committing HK$468 million in the offering, after borrowing HK$193.7 billion in margin financing from brokers. The institutional tranche saw an oversubscription rate of around 18 times.
China International Capital Corporation said in a report on Monday that the weight of hardcore tech firms in sectors like AI hardware in Hong Kong was still low, partly contributing to the weak performance this year. The Hang Seng Tech Index has inched up only 2 per cent so far this year, far behind the 12 per cent growth of the Star 50 Index of the Nasdaq-style Star Market in Shanghai.
