Wuxi Lead Intelligent Equipment (0470) had a flat trading debut in Hong Kong on Wednesday after the Chinese industrial automation equipment maker raised HK$4.9 billion in a share sale.
Its shares opened at HK$46.26 each, about 1 percent higher than its offer price of HK$45.80, and climbed to HK$46.38 before paring gains to trade around the issue price.
"Since the stock is already listed on the A share market, its H share price is influenced by the performance of its A share counterpart," said Kenny Ng, a securities strategist at China Everbright Securities International.
"As a result, stocks with such an A plus H dual-listing structure typically exhibit relatively stable fluctuations on their first trading day in Hong Kong market."
A shares trade in China and H shares trade in Hong Kong.
In Shenzhen, Wuxi Lead's A shares were down about 3.6 percent at 55.46 yuan per share. It offered 107.7 million H shares at a maximum offer price of HK$45.80 each.
Founded in 2002, Wuxi Lead builds machines and production-line systems used to make battery cells and packs for electric vehicles and energy storage, as well as equipment for solar cell and module manufacturing.
Wuxi Lead's revenue for the nine months that ended on September 30 rose 14.9 percent to 10.4 billion yuan from 9.0 billion Chinese yuan a year earlier, while net profit almost doubled to 1.2 billion yuan from 587 million yuan.
On January 25, the company said it expected its full-year 2025 net profit to jump 424.3 percent to 529.2 percent from a year earlier.
Listing proceeds will fund the global expansion of its R&D and sales and service network, and will also go toward broadening its portfolio, strengthening digital infrastructure, and providing working capital funding, its prospectus said.
The retail portion of the offering was nearly 80 times oversubscribed and the international tranche 10.5 times, according to the company's allotment results announcement on Tuesday.
Cornerstone investors include Oaktree Capital Management, Pinpoint Asset Management Limited and Aspex Master Fund, according to its prospectus.
Wuxi Lead's offering adds to a pipeline of China-related deals looking to tap Hong Kong's revived equity capital markets.
Hong Kong logged its strongest start to a year since 2021, with IPOs and second listings raising about US5.5 billion in January, the most since US7.6 billion was raised in January 2021, LSEG data showed.
Citic Securities and JP Morgan are joint sponsors of Wuxi Lead's offering.
Reuters
