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Transsion Holdings, the Shenzhen-based company that manufactures Africa's most popular smartphones, saw a lackluster response to its HK$3.36 billion share offering in Hong Kong. The bookbuilding process closed on Monday, with preliminary data indicating that the offering attracted around 14,000 applications and was oversubscribed by about 3.5 times.

Retail participation in initial public offerings (IPOs) in Hong Kong has been declining since September, with only two of the 12 listings last month receiving more than 100,000 retail applications. In contrast, 11 out of 19 listings in July and August attracted over 100,000 retail applicants, with Momenta and Basic Semiconductor each exceeding 200,000.

According to Jasper Chan, a senior manager at Phillip Securities, Transsion lacked strong fundamentals and competitive advantages, as it struggled in the intense African market against Chinese competitors like Xiaomi and Oppo. The company's recent performance, with a 4% drop in annual revenue and a 53% plunge in profit, did not sit well with investors.

Transsion's Shanghai-listed shares dropped more than 8% during the Hong Kong subscription period, indicating cautious investor sentiment. The Hong Kong debut of Transsion's shares is expected on Thursday, backed by 11 prominent investors including GIC, Shenzhen Longsys Electronics, and Bank of China Wealth Management, with Citic Securities acting as the sole sponsor of the listing.