BRIEF: Dahon Tech rallies in hugely oversubscribed Hong Kong IPO
Shares of folding bicycle maker Dahon Tech (Shenzhen) Co. Ltd. (2543.HK) opened with a 36% jump at their Hong Kong trading debut on Tuesday, but then eased throughout the morning to close up 21% at HK$60 by the midday break.
The company offered 7.92 million shares at HK$49.50 each, with the Hong Kong portion –representing 10% of shares on offer – oversubscribed by 7,557.4 times — shattering a record for the exchange. The international placement was oversubscribed by 20.65 times, as the offering raised net proceeds of 342 million yuan ($43.9 million).
Dahon said it will use 30% of the proceeds to modernize its production systems and expand its operational capacity, with another 30% for strengthening its distribution networks and strategic brand development. Another 30% will go to R&D, with the remaining 10% for general working capital.
By Lau Chi Hang
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