RoboTechnik slips on debut as four test IPO market

RoboTechnik Intelligent Technology, a Chinese automation equipment maker, experienced a 9.8 percent decline in its Hong Kong debut trading, following a HK$5.18 billion share sale. The stock plummeted to HK$393.20, from an offer price of HK$436, after opening at HK$419.60. The broader market also suffered, with the Hang Seng Index dropping 0.6 percent and the tech index falling 1.2 percent.

This was one of four companies to trade on Hong Kong's debut, a test of investor appetite for new offerings amid a resurgence in the city's IPO market. Hong Kong IPOs, including secondary listings, have raised US$46.54 billion this year, a 94.3 percent increase from the previous year, according to LSEG data. RoboTechnik, which specializes in photovoltaic cell manufacturing, testing systems for silicon photonics, and AI infrastructure, raised HK$5.18 billion.

Other companies debuting on the same day included Shenzhen Kinwong Electronic, down 7 percent at HK$65, and Red Avenue New Materials Group, down 9.1 percent at HK$40. RoboTechnik's CEO, Dickie Wong, noted that the IPO market lacks the same impact due to US-China tensions, AI and chip sector worries, and a more cautious approach to investments.

The company plans to utilize the proceeds for R&D, expanding production capacity, and potential acquisitions.