BRIEF: Capacitor film maker Haiwei sags in Hong Kong debut

Hebei Haiwei Electronic New Material Technology Co. Ltd. (9609.HK), a producer of ultra-thin capacitor film, opened 5.4% below its offer price in its Hong Kong trading debut on Friday, and continued to fall, closing down 15.34% at HK$12.09 by the midday break.

The company said it sold 35.45 million H-shares for HK$14.28 each, raising net proceeds of HK$452 million ($58 million). The Hong Kong offering for local investors was oversubscribed by 5,425 times, while the international tranche was 5.11 times covered. Cornerstone investor Huixing Lihai subscribed for 15.13 million shares, representing 42.67% of the total offering. Pre-listing investor BYD held about 6 million shares.

Haiwei was China’s second-largest capacitor film producer in 2024 by sales volume, according to third-party market data in its prospectus. Such films are widely used in new-energy vehicles, renewable power systems, industrial equipment, and household appliances. Haiwei reported revenue of 162 million yuan in the first five months of this year, down 3% year-on-year, while its profit fell 4.5% to 31.35 million yuan.

The company plans to spend about 82% of its IPO proceeds to expand capacity, including building a new capacitor-film manufacturing plant in southern China. Around 5% will go to strengthening its R&D capabilities, 3% will go to sales and marketing, and the remaining 10% will be used for working capital and general corporate purposes.

By Lee Shih Ta

To subscribe to Bamboo Works weekly free newsletter, click here