HYC makes history with IPO launch 
2019-06-28
Suzhou HYC Technology became the first company to launch an IPO on Shanghai’s new STAR Market — a Nasqdaq-style sci-tech board — yesterday.
The IPO was open to individual investors online and institutional investors offline. The shares will be listed on the STAR board.
China opened its new sci-tech board earlier this month.
The company was oversubscribed by 335 times. It set its IPO at 24.26 yuan (US$3.57) per share, valuing it at 41 times of its 2018 P/E ratio. Most IPOs are about 23 P/E.
Suzhou-based HYC, which offers testing devices and services for flat panel display and integrated circuit products, is expected to raise almost 1 billion yuan through the IPO. 
It will use the new money to support investment on display and semiconductor facilities. 
In 2018, the company’s revenue was 1 billion yuan with a gross profit margin of 55.4 percent, the company said in its statement to the Shanghai Stock Exchange. 
Institutional investors are expected to take a majority of IPOs. The new board does not have the daily 10 percent price change limit of the main bourses. The company will announce the final allotment on July 3.
