Transsion stumbles out of the gate after weak pricing
Shenzhen Transsion Holdings Co. Ltd. (2636.HK; 688036.SH), sometimes called the “Mobile King of Africa,” sagged in its Hong Kong trading debut on Thursday, opening 1% lower and dropping during the morning to close at HK$33.80 by the midday break, down 4.3% from its IPO price.
Transsion sold 86.65 million shares for HK$35.30 each, representing the bottom of its previously announced range. The public offering for local investors was oversubscribed by just 3.46 times, while the international offering was oversubscribed by 1.55 times. Twelve cornerstone investors bought a total of 35.28 million shares, accounting for 40.72% of the offering.
Net proceeds from the IPO totaled HK$2.97 billion ($378 million), of which 40% will be used for AI -related technology R&D. Another 30% will go to marketing and brand building, and 20% will be used to bolster the company’s mobile internet services and internet of things (IoT) products. The remaining 10% will be used for general working capital.
Transsion ranked eighth in the global mobile phone market last year based on revenue, with 1.7% share. The company sells most of its phones through a network of more than 2,900 distributors across more than 100 countries and regions worldwide at the end of April.
By Lau Chi Hang
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