A gong inside the Hong Kong Stock Exchange. China Vanke’s subsidiary Onewo and EV maker Zhejiang Leapmotor Technology began trading on the Hong Kong market on Thursday.
Paul Yeung | Bloomberg | Getty Images
Two of Hong Kong’s largest initial public offerings of the year dropped on their first day of trade in the city on Thursday.
Shares of Onewo dropped 5.37% from its offer price of 49.35 Hong Kong dollars ($6.29) per share in early trade, while Leapmotor’s stock also fell 21% compared to its offer price of 48 Hong Kong dollars per share.
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The moves come after the companies’ shares reportedly fell in gray market trading the previous day.
The broader Hang Seng index was last up 1.97%.
The retail tranche of shares for both initial public offerings were undersubscribed, according to their respective filings. Around 82% of Onewo’s shares for the local market were bought, and only 16% of Leapmotor were purchased, the filings said.
Unsold shares were allocated to international buyers.
Onewo, a subsidiary of property developer China Vanke, raised 5.6 billion Hong Kong dollars ($713.5 million), while Leapmotor raised 6.06 billion Hong Kong dollars ($771.7 million).
Data from the Hong Kong Exchange (HKEX) show there were 48 new listings in Hong Kong from January to August in 2022, raising a total of 56 billion Hong Kong dollars ($7.1 billion) – a steep drop from the same period in 2021, in which there were 69 new listings that raised 271.4 billion ($34.6 billion) Hong Kong dollars.