Chinese refrigeration parts firm sees lukewarm Hong Kong debut
Zhejiang Sanhua Intelligent Controls's debut is seen as part of Hong Kong's resurgence as an initial public offerings hub, following stock flotations by Chinese battery giant CATL and drug developer Jiangsu Hengrui this year.
Sanhua shares began trading at HK$20.95, more than seven percent below its offer price of HK$22.53, but recovered to close at HK$22.50.
The Hong Kong benchmark Hang Seng Index rose 0.67 percent on Monday.
The company -- which claims to be the world's largest maker of refrigeration and air-conditioning control components, with 48 factories worldwide -- reported 27.9 billion yuan (US$3.9 billion) in revenue last year.
The firm lists automakers including Volkswagen, BYD and Mercedes-Benz as partners and was previously reported to be a supplier of thermal management parts for Tesla.
Sanhua has also signalled interest in China's growing robotics sector and said in its Hong Kong prospectus that some of the funds raised would go to researching "key components of bionic robots".
The proceeds will also be used to enhance production capabilities, including in countries such as Thailand and Vietnam, and increasing production automation, Sanhua said.
Hong Kong suffered a lengthy slump in IPOs since 2020, with Chinese mega-companies pausing their listing plans in light of a regulatory crackdown by Beijing.
But the Chinese finance hub's fortunes improved following the $4 billion debut of Chinese appliance maker Midea last September.
CATL last month raised US$4.6 billion in Hong Kong in the world's biggest IPO this year.
Over the past month, Chinese firms Foshan Haitian and Jiangsu Hengrui each raised more than US$1 billion in their Hong Kong debuts.
The Hong Kong stock exchange said it is processing nearly 140 listing applications as of the end of May.
Proceeds from IPOs and additional share sales in Hong Kong have reached US$26.5 billion as of June, compared with US$3.8 billion over the same period last year, according to data compiled by Bloomberg.
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