BRIEF: SDMC jumps in trading debut as Luxshare, Longsys buy in
Shares of smart home products maker Shenzhen SDMC Technology Co. Ltd. (0901.HK) doubled in their Hong Kong trading debut on Wednesday, before paring some of their gains to close at HK$61.20, up 86.6% from the offering price.
The company sold 19.21 million shares for HK$32.80 each, raising net proceeds of HK$570 million ($73 million). The public offering for local Hong Kong investors was oversubscribed by more than 1,900 times, while the international placement was oversubscribed by 1.2 times. Luxshare Precision and Shenzhen Longsys subscribed for 1.73 million and 1.04 million shares, respectively, representing 9.02% and 5.41% of the total shares on offer.
The company’s revenue last year rose about 33% to 3.37 billion yuan, while its profit jumped 74% to 239 million yuan.
The company plans to use 25% of the IPO proceeds to enhance its market position and develop new products, while 35% will go into AI Home-related technologies. Another 20% is earmarked for global expansion, 10% will be invested in players within the artificial intelligence and algorithm sectors, and the remaining 10% will go toward general working capital.
By Lau Chi Hang
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