HKEX IPO Monthly Report | Over 90% of HKEX IPOs rose on the first trading day in October, with a maximum gain of nearly HKD 12,000 per lot; AI and pharmaceuticals emerged as hot sectors, while Class B shares experienced their first instance of listing below issue price.

The Hong Kong IPO market remained vibrant in October, with a total of 12 companies listing on the Hong Kong stock exchange, raising a total of HKD 2.22 trillion, marking an increase of nearly 24% compared to the previous month. Investor enthusiasm for subscribing to new shares remained strong,$JST GROUP (06687.HK)$、$XUANZHUBIO-B (02575.HK)$、$HAIXI PHARMA (02637.HK)$with the number of subscribers exceeding 300,000 people,$SANY HEAVY IND (06031.HK)$even though it is a leading traditional manufacturer, it still attracted nearly 116,000 investors to participate; the total number of subscribers in October exceeded 2.89 million, representing a 62% increase compared to September.

In terms of oversubscription multiples,$GOLDEN LEAF INT (08549.HK)$the oversubscription multiple in the public offering portion exceeded 11,464 times, making it the new 'most oversubscribed' stock in Hong Kong since 2025.$DEEPEXI TECH (01384.HK)$With an oversubscription of 7,569.83 times, it ranked second for the year,$CF PHARMTECH (02652.HK)$6,697.8 times,$YUNJI (02670.HK)$5,657.2 times,$ZHIDA TECH (02650.HK)$5,440.8 times,$XUANZHUBIO-B (02575.HK)$and 4,908.33 times oversubscribed, all entering the top ten list of subscription multiples for the year.

Over 90% of IPOs rose on their first trading day in October, with Changfeng Pharmaceutical earning HKD 11,975 per lot; the AI + pharmaceuticals track yielded significant profits.

The first trading day of the month was highly profitable, with 11 out of 12 companies experiencing gains on the first day, including$GOLDEN LEAF INT (08549.HK)$a surge of over 300% on the first day, yielding a profit of HKD 8,250 per lot;$ZHIDA TECH (02650.HK)$an increase exceeding 190%, generating profits of over HKD 6,400 per lot;$CF PHARMTECH (02652.HK)$a rise of more than 160% on the first day, delivering returns of HKD 11,975 per lot;$DEEPEXI TECH (01384.HK)$、$XUANZHUBIO-B (02575.HK)$both doubling in value on the first day, earning profits of over HKD 8,000 and HKD 7,000 per lot respectively;$BAMA TEA (06980.HK)$recording an increase of nearly 90%, resulting in first-day profits of over HKD 4,300 per lot.

This month’s listed companies represent a wide range of industries, including four information technology companies, three pharmaceutical companies, three industrial firms, one construction company, and one consumer staples company. Among them, the four information technology companies$DEEPEXI TECH (01384.HK)$、$CIG (06166.HK)$、$YUNJI (02670.HK)$and$JST GROUP (06687.HK)$All three pharmaceutical companies rose on the first day.$CF PHARMTECH (02652.HK)$、$XUANZHUBIO-B (02575.HK)$、$HAIXI PHARMA (02637.HK)$The first day saw a collective rise.

Notably, among the four information technology companies, three are related to the artificial intelligence field, reflecting the recent preference of the Hong Kong stock market for technology-related themes such as AI.

$DEEPEXI TECH (01384.HK)$Focused on providing enterprise-level large model AI application solutions to help businesses efficiently integrate data, decision-making, and operations at scale. Listed under Chapter 18C, it is the first “enterprise-level large model AI application stock” in the Hong Kong stock market.

$CIG (06166.HK)$Engaged in the design, development, and sale of connectivity and data transmission equipment, with a customer base including artificial intelligence data centers, telecommunications operators, information and communications technology (ICT) equipment providers, multiple system operators (MSOs), and Internet of Things (IoT) solution providers, including solution providers based in the United States and Europe. The company is the first CPO stock, the first AI computing power communication and optical module stock in the Hong Kong stock market, and also the first “A+H” listed company in this field.

$YUNJI (02670.HK)$Primarily dedicated to providing cutting-edge robotics and intelligent agent services, offering robotic systems and functional kits supported by AI digital systems. This issuance adopts the 18C clawback mechanism: 5% for the Hong Kong public offering, a 10% clawback for subscription levels of 10 times or more but less than 50 times, and a 20% clawback for subscription levels of 50 times or more.

BOCOM International analysis indicates that technological innovation may receive further policy support during the “15th Five-Year Plan” period, with high-end system-level software expected to achieve an increase in localization rates. The 10th China International Artificial Intelligence Conference and Computing Power Algorithm Summit 2025 will be held in Shanghai this week. A dedicated “New AI Products/Technologies Results Exhibition Area” will be set up at the conference venue to showcase technical products covering the foundational, technological, and application layers of AI.

The strong performance of new medical stocks in October continued,$CF PHARMTECH (02652.HK)$with the highest earnings effect on the first day, surging over 160%, and a one-lot return as high as HKD 11,975. The company focuses on the research, production, and commercialization of inhalation technology and inhaled drugs, specifically targeting respiratory diseases. It has developed a product portfolio covering a wide range of patients, medical specialties, and therapeutic areas.

$XUANZHUBIO-B (02575.HK)$On the first day, it surged over 125%, earning HKD 7,350 per lot. This is an innovation-driven biopharmaceutical company in China that has established a comprehensive internal R&D platform. Currently, it has more than ten drug assets under active development, covering digestive diseases, oncology, and NASH.

Galaxy Securities released research indicating that despite the extended period of valuation adjustment in the pharmaceutical sector, there has been a significant structural recovery trend recently. The institution noted that innovative drug business development (BD) will continue into the second half of the year. A potential global easing cycle by major central banks could further drive valuation increases. Additionally, the current recovery in secondary market sentiment is driving a rebound in primary market investment and financing, with CXO and upstream sectors continuing to show positive momentum. Medical device tendering and bidding data have also improved, with pent-up demand for replacement gradually being released.

Mechanism B saw its first instance of a broken issue, shifting focus towards rational considerations of fundamentals and market sentiment.

Among the twelve new stocks this month, except for$DEEPEXI TECH (01384.HK)$、$YUNJI (02670.HK)$which adopted the 18C clawback mechanism, the remaining ten companies used Mechanism B. Among these ten companies, apart from Guanghe Tongxin, a wireless communication module provider that experienced a broken issue, the other nine companies using Mechanism B all rose on their first day.$FIBOCOM (00638.HK)$This also became the first broken issue under Mechanism B after the official implementation of the new IPO pricing rules on August 4th. On its listing day, it closed down nearly 12%, ending CITIC Securities' streak of '14 consecutive successful sponsorships' of Hong Kong stock projects.

Market analysis suggests that the broken issue was influenced by external factors such as market conditions and sector fluctuations. On the listing day, both A-shares and Hong Kong stocks weakened simultaneously, with the Shanghai Composite Index dropping 0.07% and the Hang Seng Index falling 0.94%. Coupled with short-term volatility in the communications sector, overall market sentiment remained subdued, directly pressuring its stock performance.

Furthermore, the decline in its own performance has weakened investment confidence. In the first half of this year,$FIBOCOM (00638.HK)$the company achieved operating revenue of 3.707 billion yuan, a year-on-year decrease of 9.02%, with net profit attributable to shareholders of 218 million yuan, down 34.66% year-on-year, and non-recurring net profit attributable to shareholders of 202 million yuan, representing a year-on-year decrease of 36.06%. Excluding the impact of Raylink Wireless' pre-installation vehicle business, the company's operating revenue increased by 23.49% year-on-year, and net profit attributable to shareholders grew by 6.54%.

Finally, the valuation cushion for AH shares became ineffective. Despite the H-share issuance price of Guanghe Tong being HKD 21.5 (RMB 19.71), which is merely 71% of the A-share closing price on the first day of listing at RMB 27.57, theoretically offering a valuation advantage, market analysts pointed out that even under Mechanism B where institutions lead pricing, if the market environment deteriorates or valuations do not align with performance, it would still be difficult to avoid the risk of falling below the issue price. This also signifies that Hong Kong's IPO market has shifted towards rational consideration of fundamentals and market sentiment.

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Editor/melody, lambor

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