The coldest IPO of the year has arrived! Dongshan Precision broke its offer price intraday on its first day of trading in Hong Kong; some IPO investors faced a floating loss of up to HK$3.18 million.

The poor secondary market performance of Dongshan Precision was already foreshadowed during the IPO subscription stage. According to the company's allotment announcement, despite the strong support of 20 cornerstone investors, the public offering recorded only 0.52 times subscription, while margin financing subscription was only 0.39 times, making it the new stock with the lowest public subscription multiple in Hong Kong since February last year. All retail investors who participated in the IPO subscription were allotted shares 100%. The extremely sluggish subscription sentiment also left a small number of investors who subscribed for large tranches facing paper losses of up to HK$3.18 million.