BRIEF: Nuobikan soars in Hong Kong trading debut
Shares of AI technology company Nuobikan Artificial Intelligence Technology (Chengdu) Co. Ltd. (2635.HK) opened up 300% at HK$319.80 in their Hong Kong trading debut on Tuesday, then continued to rise to close up 338% by the midday break.
The company sold 3.79 million shares for HK$80 apiece, representing the lower end of their range, raising net proceeds of HK$257 million ($33 million). The public portion of the offering for local investors was oversubscribed by 188 times, while the international placement was oversubscribed only one time.
Despite the strong demand from retail investors, Nuobikan’s financial position has shown signs of deterioration over the past three years. Its trade receivables have climbed steadily from 176 million yuan in 2022 to 474 million yuan last year, and rose further to 475 million yuan in the first half of this year.
Concurrently, the company’s impairment loss allowance related to its trade receivables has increased progressively from 21.76 million yuan in 2022 to 65.17 million last year, and rose further to 70.61 million yuan in the first half of this year. Its average receivables turnover days has also risen sharply to 373 days during the first half of the year from 192 days in 2022.
By Lau Chi Hang
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