HYC the first to launch on Shanghai's new board
Suzhou HYC Technology, the first company to launch an IPO on Shanghai’s new STAR Market — a Nasqdaq-style sci-tech board — opened to subscriptions on Thursday.
The IPO opened to individual investors online and institutional investors offline. The shares will be listed on the STAR board.
China opened its new sci-tech board earlier this month.
The company was oversubscribed by 335 times. It set its IPO at 24.26 yuan (US$3.57) per share, valuing it at 41 times its 2018 P/E ratio. Most IPOs are about 23 P/E.
Suzhou-based HYC, which offers testing devices and services for flat panel display and integrated circuit products, is expected to raise almost 1 billion yuan through the IPO.
It will use the new money to support investment for display and semiconductor facilities.
In 2018, the company’s revenue was 1 billion yuan with a gross profit margin of 55.4 percent, the company said in its statement to the Shanghai Stock Exchange.
Institutional investors are expected to take a majority of IPOs. The new board does not have the daily 10 percent price change limit of the main bourses.
The company will announce the final allotment on July 3.
As a major step to implement the strategy of innovation-driven development and advanced capital market reforms, the new board supports science and technology innovation, advancing supply-side structural reform and fostering sustainable and sound economic growth in China.