Toymaker Bloks surges 82% in Hong Kong debut after sizzling IPO reception

Shares of Chinese toymaker Bloks Group surged as much as 82 per cent in their Hong Kong market debut after its initial public offering (IPO) attracted huge demand from retail and institutional investors.

The shares changed hands at HK$109.60 versus the IPO price of HK$60.35 when trading began at 9.30am local time, valuing the maker of Ultraman and Transformers figurines at HK$26.9 billion (US$3.5 billion). They traded at HK$90.60 at noon trading break, while the Hang Seng Index slipped 0.5 per cent.

The Shanghai-based firm raised HK$1.6 billion of net proceeds by selling 27.7 million shares to investors, pricing the IPO at the top end of the HK$55.65 to HK$60.35 range, according to exchange filings.

Retail investors in Hong Kong submitted orders for 6,000 times the shares allocated to them, making it the second hottest IPO in the city since media publisher Most Kwai Chung attracted 6,289 times of subscription in its IPO in 2018. Bids from global funds reached 38.6 times, Bloks said.

“Investors took note of the success in other companies in the toy and retail sectors,” said Dickie Wong, executive director at Kingston Securities. The stock exchange’s shortened IPO settlement cycles may have also helped create a “buying rush phenomenon”, he added.