Adaspace edges up in Hong Kong trading debut

Commercial aerospace enterprise Adaspace Technology Co. Ltd. (6935.HK) opened 1.85% lower in its Hong Kong trading debut on Friday, but later reversed course to close at HK$25.26 by the midday break, up 1.45% from its offering price.

Adaspace sold 30.1 million shares for HK$24.90 apiece, at the bottom of its indicative range of HK$24.90 to HK$33.20. The public offering for local investors was oversubscribed by just 2.4 times, while the international placement was slightly oversubscribed. The offering secured only two cornerstone investors, who subscribed for approximately 2.41 million shares, representing 8% of the total shares offered.

The IPO raised net proceeds of HK$652 million ($83.6 million). Approximately 35.6% of the funds will be used to bolster the company’s R&D capabilities, while 24.4% will be used for constructing a center in Shenzhen. Another 20% is earmarked for strategic investments and acquisition opportunities, and 10% will be used to repay bank loans.

The company generated 226 million yuan ($33.9 million) in revenue in the first half of this year, down 6.3% year-over-year. Its net loss for the period narrowed by 21.5% from a year earlier to 150 million yuan.

By Lau Chi Hang

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