Leapmotor and Onewo, two of the largest completed initial public offerings in Hong Kong this year, fell on Thursday’s opening day of trading.
Shares of Leapmotor, a Chinese manufacturer of electric vehicles, fell as much as 41.6% from the offer price of 48 Hong Kong dollars ($6.11) per share. It last traded 36.9% less highly.
Onewo’s stock last traded 7.9% lower than its opening bid price of 49.35 Hong Kong dollars ($6.29) per share.
The actions were taken after the shares of the company apparently decreased in grey market trading the day before.
The larger Hang Seng index gained 1.49% most recently.
According to their respective filings, the retail tranche of shares for both initial public offerings was undersubscribed. According to the records, only 16% of Leapmotor’s shares were purchased, compared to about 82% of Onewo’s shares for the local market.
Unsold shares were distributed to foreign investors.
Leapmotor raised 6.06 billion Hong Kong dollars ($771.7 million), while Onewo, a unit of real estate developer China Vanke, raised 5.6 billion ($713.5 million).
According to data from the Hong Kong Exchange (HKEX), from January to August 2022, there were 48 new listings in Hong Kong, raising a total of 56 billion Hong Kong dollars ($7.1 billion). This is a significant decrease from the same period in 2021, when there were 69 new listings, raising 271.4 billion Hong Kong dollars Kong dollars ($34.6 billion).