Hong Kong stocks have a new champion! The large investment banks' subscription for the technology sector is overflowing in the market, soaring up to 7558 times, setting a new record for stock subscriptions in history!

The Hong Kong IPO market has surprisingly given birth to a new generation of "subscription kings"! The over-subscription record of Maokai Kuaichong, which lasted for more than six years, has finally been broken.

Let me tell you how crazy this is—Global folding bike leader Dahon Technology's listing has triggered a frenzy among investors, with a subscription multiple as high as 7558.4 times! This completely crushes the 6289 times record set by Moke Kwan Chung in 2018, it’s simply a historic moment!

I also checked the data, and the first-hand subscription rate is only a pathetic 0.02%, which is simply the probability of buying a lottery ticket! Among all the newly listed stocks in Hong Kong with oversubscription, this company's subscription difficulty is definitely the highest in history. Just thinking about 223,900 people fighting to subscribe makes me feel exhausted for them.

Interestingly, the IPO scale of the large industrial technology company is actually not large, with a total of 7.92 million shares issued at a price of HKD 49.5 per share, raising a net fundraising amount of about HKD 342 million. It is laughable that such a small-scale fundraising has attracted such crazy enthusiasm, and the passion of Hong Kong investors is truly astonishing.

Lucky investors who won the lottery made a big profit, with the stock price soaring by as much as 18.69% on its first day of listing, and the company's market value skyrocketing to 1.86 billion HKD. However, to be honest, how long can this explosive growth last? I doubt that this is entirely due to speculative behavior creating a bubble.

Dahing Technology was founded by the highly acclaimed "Father of Folding Bicycles" Dr. Han Dewei, who holds a Ph.D. in Physics from the University of Southern California. This background certainly allows investors to invest more money. The company focuses on products such as folding bicycles and road bikes, reportedly capturing 26.3% of the folding bicycle market share in mainland China.

I have to admit that the company's performance has grown rapidly in recent years, with revenue increasing from 254 million RMB in 2022 to 451 million RMB in 2024, and net profit rising from 31.434 million RMB to 52.299 million RMB. However, is this really worth such madness from investors? Personally, I feel that they are likely being carried away by market speculation, and they may ultimately end up being trapped.

This kind of ultra-high multiple subscription frenzy is actually very dangerous. Once the stock price adjusts, retail investors who enter afterward may become the ones left holding the bag. However, the Hong Kong stock market always seems to be filled with this kind of gambling mentality, especially in the current situation where the market lacks highlights, a new stock can trigger such a sensation.

That being said, this may also reflect an excess of market liquidity, with investors lacking good investment channels, leading to a frenzy in chasing hotspots, resulting in excessive concentration of funds. This phenomenon is worth our deep consideration: has the tendency of bubble formation in the Hong Kong stock IPO market already emerged?

This frenzy of subscription is really just a gamble for ordinary investors.

Disclaimer: For reference only. Past performance does not guarantee future results.