👋 Hi Tigers,
A noticeable change has recently appeared in the Hong Kong IPO market. The myth of “zero IPO break” has finally been broken.
For a while, many investors followed a simple strategy: Subscribe to any IPO, and you would likely make money.
However, a symbolic event occurred on March 11: Several Hong Kong IPOs experienced first-day price drops.
This may signal that: Hong Kong IPO investing is entering a “selective era.”
Today, let’s take a look at the latest IPO opportunities.
1. Today’s IPO Focus
1️⃣ Feisu Innovation ( $FS.COM(03355)$ )
-
Subscription period: March 13 — March 17
-
Entry fee: HKD 4,201.96
Business:
Smart manufacturing software and industrial automation solutions
Main services include:
-
Factory digitalization
-
Equipment management systems
-
Industrial data platforms
Market focus:
With current market sentiment becoming more cautious, whether tech companies are reasonably valued will be crucial.
2️⃣ Guanghe Technology $DELTON(01989)$
Business:
PCB (Printed Circuit Board) manufacturer
What is PCB? Simply put:
Almost all electronic devices rely on PCBs.
This includes:
-
GPUs
-
Servers
-
AI hardware
Market logic:
Many investors view the company as part of the AI server supply chain.
Especially with the NVIDIA GTC approaching, companies related to the AI supply chain often attract increased market attention.
2. 📉 What Is Happening in the Hong Kong IPO Market?
2026 Hong Kong IPO statistics:
-
27 IPOs listed so far this year
-
23 rose on their first trading day
-
Success rate: about 85%
-
2 experienced first-day declines
Overall success rates remain relatively high.
But market divergence is becoming clear.
3. Why Was the “Zero Break” Myth Broken?
There are likely three reasons.
1️⃣ Risk appetite is declining
Recently, global markets have shown higher volatility:
-
U.S. stock market pullbacks
-
Increased macro uncertainty
Investors are becoming more cautious.
2️⃣ IPO valuations are normalizing
Some companies were priced too aggressively.
The market is no longer blindly accepting those valuations.
This is actually a normal phenomenon in mature markets.
3️⃣ Liquidity in Hong Kong stocks is declining
Trading volumes in Hong Kong have shrunk noticeably.
Lower liquidity means:
Less buying power to support new listings.
4. 🧠 New IPO Strategy
If the market enters a selective phase, investors should focus on four indicators:
✅ Valuation Is the company’s PE/PB lower than the industry average?
✅ Underwriter background The historical performance of the underwriter matters.
✅ Cornerstone investors Are there well-known institutional investors supporting the IPO?
✅ Grey market performance
Many investors on Tiger Community refer to grey market trading before IPO listing.
5. 🎓 Investor Education
What should you do if an IPO breaks below its issue price?
Many investors panic when they encounter an IPO break for the first time.
But generally, there are three scenarios.
Scenario 1: Price drop + very large trading volume
This may indicate heavy distribution by early investors. Consider cutting losses.
Scenario 2: Price drop + very low trading volume
This could simply be short-term volatility. You may observe the stock for 1–2 days.
The key rule:
Always set a stop-loss in advance.
💬 Discussion Topic
Let’s talk about real experiences.
Have you won any IPO allocations this year?Did you make money or lose money?
What is your current strategy?
A️. Subscribe to everything
B. Selective IPO investing
C️. No longer participating in IPOs
Share your experience in the comments 👇
🎁 We’ll randomly select 5 users to receive 100 Tiger Coins.
⚠️ Disclaimer
IPO investments involve the risk of price breaks.
Please thoroughly understand a company’s fundamentals before subscribing.
For SG users only, welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs.
🎉Cash Boost Account Now Supports 35,000+ Stocks & ETFs – Greater Flexibility Now
-
Find out more here.
Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.
-
other helpful links:
Comments