BRIEF: Zhida shares triple in trading debut after weak pricing

Shares of EV charger maker Shanghai Zhida Technology Development Co. Ltd. (2650.HK) tripled in their Hong Kong trading debut, closing up 192% at HK$195.50 on Friday after pricing weakly.

The company sold about 6 million shares for HK$66.92 each, the bottom of its previously given range of HK$66.92 to HK$83.63. The portion for local Hong Kong investors was nearly 5,440 times oversubscribed, while the international portion was just 1.4 times oversubscribed. The entire share sale raised net proceeds of HK$326 million ($41.8 million).

Zhida mainly sells household EV chargers, ranking first in China for such chargers with 13.6% of the market. That status also gives it 9% of the global market.

But the company is losing money, including an adjusted net loss of 15.7 million yuan in this year’s first quarter. It has attributed the recent losses to market conditions that resulted in increased sales and operating expenses and fluctuations in average selling prices and gross profit margins.

By Lau Chi Hang

To subscribe to Bamboo Works weekly free newsletter, click here