A new "super popular stock" in the Hong Kong market! The initial public offering of Dahong Science and Technology has exceeded 7558 times, setting a historical record, with a sharp rise in stock price from the first day!

After approximately six and a half years of holding the “super popular stock throne” in the Hong Kong IPO market, a new challenger has finally emerged for MOKI Kwan Chung (01716.HK).

The global leader in the folding bicycle industry, Daitokukou (02543.HK), has completed its global public offering, receiving enthusiastic support from investors. The subscription rate has set a record in the history of Hong Kong IPOs.

According to the allocation results from Daiko Kogyo, approximately 223,900 valid applications were gathered for the public offering in Hong Kong, with an astonishing subscription rate of 7558.4 times. This greatly exceeds the 6289 times recorded by Mokei Kwai Chung in 2018, heralding the birth of a new “super popular stock” in the Hong Kong market.

According to Wind's data, the number of applicants was so high that the allocation rate for a large subscription was only 0.02%, which is the most stringent level among the over-subscribed stocks in Hong Kong.

The allocation for institutional investors was also strong, with shares being allocated to 442 investors, recording an application multiple of approximately 21.65 times.

The market reaction was enthusiastic, but the scale of this IPO was not that large. The company issued 7.92 million shares, priced at 49.5 Hong Kong dollars per share, with a net fundraising amount of approximately 342 million Hong Kong dollars.

In this public offering, renowned cornerstone investors such as Allianz Global Investors Asia Pacific, Greater Bay Area Fund Management, Harvest, and Wake Hong Kong also participated. These institutions collectively underwrote 2.0138 million shares, equivalent to approximately 12.7598 million US dollars.

Investors who won the lottery made significant profits from the first day of listing. As of the time of writing, the company's stock price has risen by 18.69%, and its market capitalization has reached 1.86 billion Hong Kong dollars.

Dahon, founded by Dr. Hans W. Daehne, who is known as the “father of the folding bicycle.” He holds a Ph.D. in physics from the University of Southern California.

The company's product lineup includes folding bicycles, road bikes, mountain bikes, children's bicycles, and electric assist bicycles. As of 2024, it holds a top company position in the mainland China folding bicycle market with a 26.3% share based on retail volume.

In recent years, Daiko Engineering's bicycle products have achieved rapid improvement in performance, growing in both quantity and price.

According to the prospectus, the company's revenue is expected to increase from 254 million yuan in 2022 to 451 million yuan in 2024. Net profit is also projected to expand from 31.434 million yuan in 2022 to 52.299 million yuan in 2024, with average annual growth rates of 33.1% and 29.1%, respectively. The first four months of this year have also continued to show strong growth.

Disclaimer: For reference only. Past performance is not indicative of future results.