Folding bike giant Dahon Tech 351 times oversubscribed in retail round

Chinese folding bicycle manufacturer Dahon Tech (Shenzhen) was oversubscribed about 351 times on Monday as the company kicked off retail book-building for its Hong Kong initial public offering, with a minimum investment of nearly HK$5,000.

Dahon plans to offer 7.92 million shares, with an offer price of HK$49.5 per share, aiming to raise HK$392 million.

Each board lot consists of 100 shares, requiring a minimum investment of HK$4,999.90.

The book-building period will end at noon on Thursday.

Its shares are set to be listed on Tuesday next week, with China Securities (International) acting as sole sponsor.

As of 3pm on Monday, the company garnered HK$13.7 billion in margin loans, making its retail tranche more than 351 times oversubscribed, according to Futu Securities.

Last year, the company's net profit rose 50.1 percent to HK$52.3 million, while its revenue also grew 50.2 percent to HK$450.7 million.

According to the exchange filing, Dahon was mainland China’s largest folding bicycle company – securing the top spot in terms of both retail sales volume and retail sales value for folding bicycles – in 2024.

HELEN ZHONG