Korva is a scroll of the internet’s best ideas.
Unitree IPO 8,000 times oversubscribed
That is a new milestone for the Star Market, where Unitree is trying to list.
A couple of weeks earlier, CXMT, China's DRAM memory chip maker, held a record IPO by market capitalization, surpassing the market cap that ICBC had when it listed.
Why do IPOs get oversubscribed thousands of times?
On Shanghai's STAR Market, new shares are priced before trading, and retail investors who apply are allocated shares by lottery. Because new listings have often risen sharply in their first days, applications can reach many multiples of the shares available. The market opened in 2019 and uses a registration-based listing system aimed at technology companies.
Why did Beijing create the Star Market?
China's biggest tech companies had long listed overseas, in New York and Hong Kong, because mainland rules favored profitable, established firms. The STAR Market in Shanghai opened in July 2019 to give technology firms, including those not yet profitable, a home listing. It adopted a registration-based system in which regulators check disclosure rather than judging each company's merits. Twenty-five companies began trading on the first day.