Estun Automation 10 times oversubscribed in retail tranche

Chinese industrial robot maker Estun Automation's retail tranche for its Hong Kong initial public offering was 10 times oversubscribed on Monday.

The company has drawn HK$1.83 billion from margin loans, according to data from brokerages.

Estun Automation plans to offer 96.78 million H shares from February 27 to this Wednesday, raising to HK$1.65 billion at most. The offer price ranges from HK$15.36 to HK$17, with each lot of 200 shares, and an entry fee of HK3434.29.

The company is expected to debut on March 9, with Huatai International as the sponsor.

It expects to use the net proceeds from the listing in 25 percent to expand its global production; 25 percent for seeking strategic alliances, investments, and acquisition opportunities in the upstream and downstream of the industrial robot industry chain; 20 percent for investing in research and development projects; 10 percent for enhancing the group’s global service capabilities and developing digital management systems organization-wide; 10 percent for partial repayment of existing loans; and 10 percent for working capital and general corporate purposes.

Gloria Leung