MeiG Smart Technology retail tranche 26.6 times oversubscribed

MeiG Smart Technology's retail tranche for its Hong Kong initial public offering was 26.6 times oversubscribed on Monday.

The company has drawn HK$2.78 billion from margin loans, data from brokerages showed.

MeiG Smart Technology is a global supplier of cellular modulesIoT solutions, and intelligent computing modules based in Shenzhen.

It plans to offer 35 million H shares from Monday to Thursday, raising at most HK$1.01 billion. The offer price is not higher than HK$28.86, with each lot of 100 shares, and an entry fee of HK$2915.1. 

The company is expected to debut on March 10, with China International Capital Corporation as sponsor.

It expects to use the net proceeds from the listing in 55 percent for improving research and development and innovation; 10 percent for expanding its business to a global sales network and marketing group product; 10 percent for strategic investment and/or acquisition; 15 percent for repayment of certain interest-bearing bank loans; and 10 percent for working capital and general corporate purposes.

Gloria Leung