On June 16, TopStar CNC (07688.HK) fell 5.74% in regular trading, trading at HK$32.54/share, with turnover of HK$9.39 million. The decline was driven by the convergence of the stabilization price period ending and imminent listing of over-allotment shares.
On June 14, the company announced that the overall coordinator fully exercised the over-allotment option involving 9,799,500 H shares, approximately 15% of the initially offered shares under the global offering. The shares were issued at HK$26.39 per share, with listing on the Main Board expected to commence on June 17. The stabilization price operator did not conduct any market transactions during the stabilization period. The exercise raised additional net proceeds of approximately HK$248.2 million.
The stock has faced multiple rounds of correction since its May 20 IPO, where it closed up approximately 80% on the first day. The removal of price stabilization support combined with new share supply and sustained selling pressure on recently listed HK stocks weighed on sentiment.
TopStar CNC is a Chinese company specializing in the R&D, design, production and sale of intelligent manufacturing equipment, primarily five-axis CNC machine tools, serving aerospace, automotive, energy, medical device, and shipbuilding industries.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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