BRIEF: Pateo jumps in Hong Kong trading debut

2889.HK
Butong made an IPO

Shares of smart cockpit technology maker Pateo Connect Technology (Shanghai) Co. Ltd. (2889.HK) opened up 32% in their Hong Kong trading debut on Tuesday, and continued to climb during the morning, closing up 40% at HK$142.80 by the midday break.

The company sold 10.44 million shares for HK$102.23 apiece, raising net proceeds of HK$919 million ($118 million). The portion of the offering for local Hong Kong investors was more than 500 times oversubscribed, while the international offering was 2.7-times oversubscribed.

Pateo plans to use 30% of the funds to expand its product portfolio and strengthen its capabilities in software, hardware, and cloud-based vehicle connectivity. It will use another 30% to improve production, testing and verification capabilities; roughly 20% to expand the company’s sales and service network; 10% for strategic acquisitions; and 10% for routine working capital.

By Lau Chi Hang

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