Heavily oversubscribed Xunlong IPO shares jump in Hong Kong trading debut
Shares of caviar producer Hangzhou Qiandaohu Xunlong Sci-Tech Co. Ltd. (6715.HK) opened up 36% in their Hong Kong trading debut on Tuesday, and continued to rise through the day to close up 51% at HK$114.
The company sold 16.33 million shares for HK$75.50 per share, raising net proceeds of HK$1.15 billion ($147 million). The public offering for local investors was oversubscribed by 2,134 times, while the international offering was oversubscribed 19 times. Eight cornerstone investors purchased a combined 8.15 million shares, representing 49.88% of the amount being sold.
Xunlong’s revenue reached 769 million yuan ($113 million) last year, up 14.9% from 2024, while its profit rose 17.8% year-over-year to 363 million yuan.
Of the net IPO proceeds, 40% will be allocated over the next five years for aquaculture and capacity expansion, 20% will go for brand marketing and expanding global sales channels, 15% for strengthening R&D capabilities and upgrading digital information systems, and 15% for strategic investments or acquisitions. The remaining 10% is earmarked for general working capital.
By Lau Chi Hang
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