Suzhou Dongshan Precision Manufacturing Co. slumped in its Hong Kong trading debut after an underwhelming HK$9.9 billion (US$1.26 billion) initial public offering (IPO), as investor sentiment was haunted by the deepening sell-off across China’s artificial intelligence (AI) and tech hardware sectors.
Shares of the circuit-board manufacturer, a key supplier of components for AI servers, dropped as much as 6 per cent after its debut in Hong Kong market on Wednesday. It bounced back slightly with a fall of 4.6 per cent at 9.45am.
The weak debut came despite the company pricing 113.8 million shares at HK$86.80 apiece, a 7.5 per cent below its indicative maximum price and a 27 per cent discount to the Tuesday close of its Shenzhen-listed stock.