UBTech, maker of Stormtrooper robots, jumps in Hong Kong trading debut after pricing final IPO of 2023 at lower end of range
- Stock rose by almost 1 per cent after an early wobble, as Hong Kong’s equity market wrapped up a fourth straight year of losses
- Shenzhen-based robot maker sold about 11.3 million new shares at HK$90 each, versus its target range of HK$86 to HK$116
UBTech Robotics, China’s biggest manufacturer of educational and humanoid robots, climbed almost 1 per cent on the first day of trading in Hong Kong, after raising HK$1 billion (US$130 million) of proceeds in the city’s final initial public offering of the year.
The stock closed at HK$90.85 on Friday, versus its offer price of HK$90, giving the Shenzhen-based company trading under 9880 code a HK$38 billion market capitalisation. The Hang Seng Index was little changed at a four-week high, ending the year with a 14 per cent loss.
“Since the founding of the company, UBTech always keeps in mind the mission of having robots in every household,” Zhou said at the listing event. “After the IPO, the company will continue to deliver its promise [and] deepen its research on robotics.”
The debut lit some sparks in a gloomy year for Hong Kong’s stock market. The number of IPOs fell by about a tenth, according to Refinitiv data. Proceeds collected from investors declined 54 per cent to a 20-year low of HK$46 billion.
Some US$520 billion billion of market value evaporated across the Hong Kong stock exchange this year, according to Bloomberg data. The Hang Seng Index tumbled 14 per cent in an unprecedented four-year losing streak. Its top three losers, Li Ning, Country Garden Services and Zhongsheng Group, plunged by 53 per cent to 69 per cent.
UBTech sold 11.3 million new shares to investors in Hong Kong and globally, pricing the offering at the lower end of its target range of HK$86 to HK$116, according to a stock exchange filing on Thursday. The IPO generated 5.2 times of demand from Hong Kong investors and 2.2 times from global funds.