First tech company gets green light to price its IPO before trading debut of Shanghai’s new STAR Market, as analysts predict buying frenzy
- IPOs are likely to be heavily oversubscribed as investors vie to back promising young firms due to list on the new tech board, analysts said
- Suzhou HYC Technology said it would begin price consultation with institutions for its IPO, expected to raise 1 billion yuan (US$144.9 million)
The Shanghai Stock Exchange has given the green light for the first company to start book building ahead of its listing on the eagerly-awaited technology innovation board.
It is likely to trigger a buying frenzy among investors keen to back promising young firms due to list on the new STAR Market, analysts said.
Suzhou HYC Technology, a manufacturer of display and touch testing equipment, said on Wednesday morning that it would begin price consultation with institutions for its initial public offering (IPO), which is expected to raise 1 billion yuan (US$144.9 million).
Following the price consultation, subscription for the new shares will start on June 27, HYC said in an exchange filing.
“Billions of yuan will be tied up to the company’s IPO since investors perceive those technology stocks as the country’s profit stars of the future,” said Zhou Ling, a hedge fund manager with Shanghai Shiva Investment. “Other companies due to list on the new board will also be heavily oversubscribed.”