Global Market: RoboTechnik slides below IPO price in weak Hong Kong debut

Chinese automation equipment maker RoboTechnik Intelligent Technology fell sharply in its Hong Kong trading debut on Tuesday, sliding as much as 8.5% after raising HK$5.18 billion ($660.35 million) through its initial public offering, according to a report by Reuters.

The stock opened at HK$419.60, below its HK$436 offer price, and fell as low as HK$399. It was last down 7.8% at HK$402.20.

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The weak debut came as Hong Kong's broader market also traded lower, with the Hang Seng Index down 0.4% and the Hang Seng TECH Index declining 1%.

RoboTechnik was among four companies that began trading in Hong Kong on Tuesday, offering a fresh test of investor appetite for new share offerings as the city's IPO market continues to recover.

According to LSEG data cited by Reuters, Hong Kong IPOs, including secondary listings, have raised $46.54 billion so far this year, up 94.3% from the same period a year earlier.

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Chinese printed circuit board maker Shenzhen Kinwong Electronic also opened below its IPO price. The stock started at HK$65, compared with its HK$69.88 offer price, after the company raised HK$5.1 billion. It later recovered and was last up 1.2% at HK$70.70, the report stated.

Specialty chemicals and semiconductor materials maker Red Avenue New Materials Group opened 9.1% lower at HK$40, against its HK$44 offer price, following a share sale that raised about HK$3 billion.

Robotics technology company Direct Drive Tech bucked the weaker trend, opening 4.1% higher at HK$22.48 versus its HK$21.60 offer price. The company raised HK$1.08 billion in its IPO, according to the report.

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