Shanghai’s new Nasdaq-style high-tech board, the STAR Market, appears to be losing its luster after an initial frenzy when it opened in July, with the latest batch of initial public offerings (IPOs) getting a subdued response from investors, reported Caixin.
Shanghai Haohai Biological Technology became the first company to see its shares fall below their offer price on Wednesday when the stock dipped to RMB 88.53 ($12.63) as soon as the market opened. That compared with the RMB 89.23 investors paid when they bought the securities in the IPO. The shares later recovered and were trading at RMB 89.85 when the market closed. The stock surged as high as RMB 149.3 in first-day dealings on Oct. 31 but has drifted lower ever since.
Tianjin Jiuri New Materials, a chemical products manufacturer that only listed on Tuesday, has fared even worse. It has already won the title of the IPO with the smallest price spike in first-day dealings — the shares rose just 6.42%, beating the previous record-low gain of 26.4% recorded in the debut of Baolande on Nov. 1. And during Wednesday trading, the stock dropped below its offer price of RMB 66.68.