Micta Shares Open 35.1% Below IPO Price On Debut

Micta (02041) opened at HK$10 on its trading debut, 35.1% below the IPO price of HK$15.42, leaving investors who bought one board lot of 100 shares with a paper loss of HK$542 before fees, according to ETNet. The company set the final offer price at HK$15.42 a share. Its Hong Kong public offering drew about 57,000 applications and was oversubscribed by about 435.37 times. Among 15,600 applicants who subscribed for one board lot, 782 received shares, with an allocation ratio of 5%. Investors who applied for 30,000 shares, or 300 board lots, were guaranteed one lot. Micta said the top subscription tranche covered 1,945,500 shares, with 152 applicants each receiving 3,100 shares, while 70 of those applicants were allotted an extra 100 shares. The allocation ratio for that tranche was 0.16%. The Hong Kong public offering accounted for 10% of the total offer, while the international offering was oversubscribed by 1.35 times. The company raised about HK$600 million in the IPO. It also warned that shareholding is highly concentrated among a small number of shareholders, so even small trades could trigger sharp price swings.