Hong Kong’s IPO revival faces test as three new stocks stumble on debut

Hong Kong's IPO revival faced a challenge as three new stocks performed poorly in their debut trading sessions on Tuesday. The combined raise of HK$14.4 billion ($1.83 billion) brought four companies to the market, but three of them opened below their offer prices, intensifying pressure on an otherwise slow month for initial public offerings (IPOs).

RoboTechnik Intelligent Technology led the debuts, raising HK$5.18 billion, but its shares initially traded nearly 10% below the offer price. Meanwhile, Shenzhen Kinwong Electronic, priced at the top of its range at HK$69.88, plummeted as much as 8.1% during its debut after raising HK$5.1 billion, though the stock later rebounded and surged nearly 11% above its offer price.

The volatile debut performances came after a mixed third quarter for Hong Kong listings, with 26 companies listing during the quarter, including high-profile IPOs from Zhongji Innolight, Shein, and Luxshare. Out of those, 12 fell below their offer prices, while 12 traded more than 20% below on their first day. The other two companies debuting on Tuesday were Red Avenue New Materials and Direct Drive Tech, with shares opening 9% lower and 4% higher, respectively.

Shenzhen Camsense Technologies, a producer of spatial sensors for robotic vacuum cleaners, is scheduled to commence trading on Wednesday, attracting 158,000 subscription applications and achieving an impressive 3,551 times oversubscription. This week marked Hong Kong's busiest in terms of listings since July, when 15 companies started trading within a single week.