BRIEF: New Gonow skids in Hong Kong trading debut

Shares of recreational vehicle (RV) maker New Gonow Recreational Vehicles Inc. (0805.HK) sank in their Hong Kong trading debut on Monday, after the company raised HK$305 million ($39 million) in an IPO that attracted lukewarm demand.
New Gonow’s stock opened down 23% at HK$0.98, but recovered some of those losses afterwards. The shares were down around 20% early in the afternoon session at HK$1.02. At that price it had a market value of about HK$980 million.
New Gonow sold 240 million shares for HK$1.27, near the bottom of its previously announced range of HK$1.24 to HK$1.64, according to a company stock exchange filing on Friday. The local Hong Kong portion of the listing was 1.5 times oversubscribed, while the international portion was just fully subscribed.
The company produces RVs in China mostly for sale in Australia and New Zealand. Its unit sales roughly doubled over the three years to 2023 to 2,694 RVs delivered in 2023 from 1,330 in 2021. But its revenue grew by a much faster 140% over that time, from 300 million yuan ($41 million) in 2021 to 720 million yuan in 2023, showing it was able to generate more revenue per vehicle with its growing scale and brand awareness.
By Doug Young
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