ChangXin Technology opened its subscription on July 16, according to BlockBeats. The company was described as China’s leading domestic memory-chip maker and is seen as having the potential to challenge for the position of the world’s third-largest DRAM supplier.
Institutional forecasts currently place the online allotment rate in a range of 0.30% to 0.70%, with a mainstream midpoint estimate of about 0.45%. That compares with the 0.02% to 0.05% allotment rates typically seen in ordinary STAR Market IPOs, putting this deal at roughly 10 to 20 times that level and fueling what the source called a rare broad-based retail subscription opportunity.
Retail channel gets a large reallocation
The main reason behind the higher projected allotment rate is that a large portion of the strategic placement was reallocated to the retail online channel. As a result, the online issuance volume has reached a record high for the STAR Market.
Using the 0.45% midpoint estimate, an account with 200,000 yuan in average daily Shanghai-market holdings could receive about 40 allotment numbers, translating into an estimated 18% chance of winning one lot. With 1 million yuan in average daily holdings, investors are theoretically likely to secure one lot. At the maximum subscription level, tied to 16.72 million yuan in market value, the estimate rises to about 15 lots.
Official data due after the close on July 17
BlockBeats said this kind of broad-based subscription window is relatively rare in the history of the STAR Market, with retail investors’ chances of winning an allotment markedly higher than in any popular new share sale in recent years. Still, the current figures are broker projections. The Shanghai Stock Exchange will release the official allotment-rate announcement after the close on July 17.
Winning numbers arrive on July 20
The schedule in the source shows that winning numbers will be announced on July 20. Investors must have enough funds in their accounts to complete payment before 16:00 that day. Each winning lot equals 500 shares, with a required payment of 4,330 yuan.
Institutions estimate that profit per winning lot could range from about 3,000 yuan to 26,000 yuan.