RoboTechnik Intelligent Technology, a Chinese automation equipment maker, saw its shares drop by as much as 8.5% in its Hong Kong trading debut on Tuesday. The stock fell to HK$399, compared to its offer price of HK$436, after opening at HK$419.60. By the end of the day, it was down 7.8% at HK$402.20. RoboTechnik had raised HK$5.18 billion ($660.35 million) in its share sale.
RoboTechnik was part of a group of four companies that began trading in Hong Kong on Tuesday, collectively testing investor appetite amid a revival in the city's IPO market. The broader market also showed weakness, with the Hang Seng Index declining 0.4% and the Hang Seng TECH Index down 1%. Despite the general market conditions, Hong Kong IPOs, including secondary listings, have raised $46.54 billion so far this year, marking a 94.3% increase from the previous year.
Other companies debuting alongside RoboTechnik experienced mixed results. Shenzhen Kinwong Electronic, a Chinese printed circuit board maker, opened 7% lower but later recovered to trade up 1.2% at HK$70.70 after raising HK$5.1 billion. Red Avenue New Materials Group, a specialty chemicals and semiconductor materials maker, opened 9.1% lower. In contrast, robotics technology company Direct Drive Tech saw a positive debut, opening 4.1% higher at HK$22.48 after raising HK$1.08 billion.
Analysts had expressed caution regarding RoboTechnik's debut performance due to lukewarm subscription and a tight A-H premium, noting its historical overvaluation. The company's prospectus revealed modest profitability in the first half of 2026, with revenue of 600 million yuan ($82 million) but only 6.56 million yuan in net profit, leading to concerns about its financial health and market reception.
