On September 29, RA MATERIALS fell 8.18% in regular trading, trading at HKD 38.0/share, with turnover of HKD 183 million. The stock opened at HKD 40.0, already 9.09% below its offering price of HKD 44.0 per share, and continued to slide further during the session.
On the news front, RA MATERIALS H-shares officially debuted on the Hong Kong Stock Exchange, but the listing was met with tepid investor demand. The Hong Kong public offering was only 3.39 times oversubscribed, while the international tranche received just 2.75 times oversubscription. The company issued approximately 68.12 million H-shares globally, raising net proceeds of around HKD 2.901 billion. Notably, the stock had already signaled weakness during grey market trading on September 28, closing at HKD 36.62 — a sharp 16.77% discount to the IPO price — effectively foreshadowing the first-day break.
RA MATERIALS is the global leader in phenolic resins for tires, holding 41.4% global and 45.9% domestic market share. The company also operates in semiconductor photoresist and other electronic materials. Its A-shares, listed since 2018, carry a market capitalization exceeding RMB 40 billion. Analysts had previously flagged the valuation as not cheap, recommending cautious subscription given recent weak performance of A+H IPOs in Hong Kong.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)