The latest: Many Idea Cloud Holdings Ltd. (6696.HK), a digital marketing services provider, made its trading debut in Hong Kong on Wednesday with an opening price of HK$2.91, representing an initial 48.5% surge from its IPO price of HK$1.96.

Looking up: The local portion of the company’s offering was subscribed by 1,296 investors for a total of 44.9 million shares, representing an oversubscription rate of approximately 1.81 times.

Take Note: The international portion of the listing was only 1% oversubscribed and priced at HK$1.96, close to the lower end of the IPO price range, raising net proceeds of approximately HK$250 million ($32 million).

Digging Deeper: Many Idea Cloud provides event and digital content marketing services. Its clients span a range of industries, from sportswear brands like 361 Degrees (1361.HK) and Xtep (1368.HK), to China Resources Land (1109.HK) and China Vanke (2202.HK) in real-estate, as well as Hengan International (1044.HK) in the personal care industry. The company was listed on the thinly-traded National Equities Exchange and Quotations (NEEQ) board in Beijing in 2015, but delisted in November 2020. It applied to list on the Shenzhen Stock Exchange’s Nasdaq-style ChiNext board in 2019 and passed a review by the market’s listing committee. However, the company eventually decided to switch to Hong Kong and was approved for a listing there after its second filing to the Hong Kong Stock Exchange.

Market Reaction: After their initially strong open, Many Idea Cloud’s shares rose to a high of HK$3.36 in early trade, before quickly falling back to $1.71, or 12.8% below the IPO price. The shares finished down 1% at HK$1.94 by the midday break.

Translation by Jony Ho

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