The first share on SSE STAR Market opens to subscription next week

Suzhou HYTC Technology will open subscriptions next Thursday, making it the first listed share on the Nasdaq-style SSE STAR Market.

China inaugurated the new sci-tech board last week and expects the first batch of companies to be listed on the board within two months. 

After the subscription to both individual and institutional investors, the new share will be listed in the stock market officially. 

Suzhou HYTC, which offers testing devices and services for flat panel display and integrated circuit products, is expected to raise 1 billion yuan (US$150 million) through the IPO. It will use the money to support investment on display and semiconductor facilities. In 2018, the company’s revenue reached 1 billion yuan with a gross profit margin of 55.4 percent, the company said in its statement to the Shanghai Stock Exchange. 

Also last week, the Nasdaq-style board on the Shanghai Stock Exchange, formally called the science and technology innovation board, was officially launched as the SSE STAR Market.

Institutional investors are expected to take majority parts of IPOs. They will take profit from slagging as the shares on the new board don’t have daily limits.