Adaspace Technology Co., Ltd.’s Hong Kong listing raised an estimated HK$651.76 million after expenses, but the satellite company’s shares closed below their offer price on debut, leaving IPO buyers with an immediate paper loss.
ET Net reported that the shares finished at HK$24.02 on Nov. 13, 3.53% below the HK$24.90 offer price. The outlet said a 100-share lot bought at the offer price was HK$88 below that price at the close, before transaction costs.
Reuters reported that Adaspace opened at HK$24.44, 1.8% below the offer price. The allotment announcement filed with the Hong Kong exchange said the company sold 30,121,000 shares at HK$24.90 each, the bottom of its HK$24.90-to-HK$33.20 offer range.
The filing lists HK$750.01 million in gross proceeds and estimates HK$98.25 million in listing expenses, leaving net proceeds of HK$651.76 million. The net figure is an estimate after expenses; it is lower than the gross amount raised through the share sale.
Demand reached 3.43 times the shares available in the Hong Kong public tranche and 1.79 times those in the international offering. The public tranche accounted for 10% of the offering and received 5,638 valid applications; the international tranche made up the remaining 90% and had 60 placees. The filing said no shares were reallocated between the two portions.
Adaspace’s prospectus describes the company as a commercial aerospace business focused on satellites, related services and satellite-based solutions. It projected that 35.6% of net proceeds would go to research and development and 24.4% to a Shenzhen center. Those projections assumed an offer price of HK$29.05, the midpoint of the range, and estimated net proceeds of about HK$772.4 million. The final offer price was lower, and the allotment announcement puts estimated net proceeds at HK$651.76 million.
