Shares of Suzhou HYC, the first IPO on Shanghai’s new tech board, oversubscribed 336 times as investors join frenzy

Suzhou HYC Technology prices IPO at 24.26 yuan, with sponsor Huatai Securities to take up 4.11 per cent of new shares

Online critics say there are too many references to ‘integrated circuit’ and ‘semiconductors’ despite 98 per cent of the revenue coming from testing equipment for electronic displays

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Some online bloggers have levelled criticism at the data presented in the listing prospectuses of companies slated to list on the Star Market for tech companies in Shanghai. Photo: EPA

Published: 12:17pm, 26 Jun 2019Updated: 10:46pm, 26 Jun 2019

Shares of Suzhou HYC Technology, the first company to launch an IPO on Shanghai Stock Exchange’s new Star Market, have been oversubscribed 335.6 times after investors shrugged off criticism into its dressed up prospectus.

The company set its initial public offering price at 24.26 yuan per share, it said in a filing on Wednesday, valuing it at 41 times its 2018 earnings.

If the bids below the final IPO price are excluded, the shares were still oversubscribed 257.6 times, the filing added.

Suzhou HYC Tech is set to raise 97.2 million yuan from 40.1 million new shares, giving it a market cap of 9.7 billion yuan.

Financial bloggers say the company is trying to falsely present itself as a chip maker. Photo: SCMP Handout

Huatai Chuangxin, a subsidiary of the IPO sponsor Huatai Securities, will buy 1.6 million shares, or 4.1 per cent of the IPO, as the Star Market’s rules require the sponsor to invest in the company. The shares will have a lock-in period of 24 months.