Chinese AI satellite maker Adaspace Technology slips in Hong Kong debut after $96 million IPO

Chinese artificial intelligence satellite maker Adaspace Technology made a subdued debut on the Hong Kong stock market on Friday, with its shares falling as much as 1.8% after raising HK$750 million ($95.6 million) through an initial public offering (IPO).

The stock opened at HK$24.44, below its IPO price of HK$24.90, and was last trading at HK$24.60, down 1.2% from the offer price. The benchmark Hang Seng Index was down 0.5% during the session.

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According to Reuters, the Chengdu-based company sold 30.12 million shares at HK$24.90 apiece, the bottom end of its marketed price range of HK$24.90 to HK$33.20.

The IPO attracted stronger demand from retail investors, with the retail tranche subscribed 3.43 times. The international offering was subscribed 1.79 times, reflecting relatively moderate investor interest in the share sale.

Adaspace develops artificial intelligence-powered satellites and provides satellite data services. The company plans to deploy the IPO proceeds towards research and development, satellite manufacturing and the establishment of a research centre in Shenzhen.

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The listing comes as Chinese technology companies increasingly look to capitalise on investor interest in artificial intelligence and the country's expanding commercial space industry.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times.)