The latest: Shares of auto finance and leasing company XXF Group Holdings Ltd. (2473.HK) opened at HK$2.18 in their Thursday trading debut, nearly double their IPO price of HK$1.10.
Looking up: The local portion of the IPO in Hong Kong was oversubscribed by about 13.7 times, a relatively solid performance compared with weaker demand for other recent new listings.
Take Note: The IPO price of HK$1.10 was near the lower end of XXF’s range of HK$1.05 to HK$1.36, and the company raised a modest HK$28.8 million ($3.7 million) in net proceeds.
Digging Deeper: XXF Group was founded in 2007 by entrepreneur Huang Wei, and started out in auto rentals. Sensing a business opportunity, it shifted into selling vehicles through financed leasing, and hit the big time. The company went public on Beijing’s National Equities Exchange and Quotations (NEEQ) board in 2015, but left the market a year later due to paltry trading volumes. It previously submitted six applications to list in Hong Kong between 2019 and 2022, but was not successful until this time, its seventh application.
Market Reaction: After doubling at the open, XXF Group shares gave back some of those gains on Thursday morning but still closed up 46.4% at HK$1.61 by the midday break.
Translation by A. Au
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