Pateo Connect Shares Surge 40% in Hong Kong Debut
Pateo Connect Technology Co. Ltd. (2889.HK) shares soared in their Hong Kong debut, opening up 32% and closing up 40% at HK$142.80 by midday. The company raised HK$919 million ($118 million) through an IPO that was heavily oversubscribed.
Pateo plans to allocate the funds strategically. 30% will go towards expanding its product portfolio and enhancing software, hardware, and cloud-based vehicle connectivity capabilities. Another 30% will bolster production, testing, and verification facilities. Roughly 20% will be used to expand the company's sales and service network. The remaining 10% will be split between strategic acquisitions and routine working capital.
The IPO saw strong demand, with the portion for local Hong Kong investors being more than 500 times oversubscribed. The international offering was also popular, with 2.7-times oversubscription. Pateo sold 10.44 million shares for HK$102.23 apiece to achieve the net proceeds.
Pateo's successful IPO and strong share performance indicate investor confidence in the company's growth prospects. The allocated funds will support Pateo's expansion in product offerings, production capabilities, and sales network, as well as strategic investments.
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