Fibocom’s Sharp Debut Drop Tests Hong Kong’s IPO Euphoria
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Fibocom debuts on the Hong Kong Stock Exchange on Oct. 22, 2025. Photo: VCG
Shares of Fibocom Wireless Inc. fell 11.7% in their Hong Kong debut Wednesday, testing investors’ confidence in the “guaranteed win” strategy of subscribing to new listings in one of the world’s hottest IPO markets.
The decline marks the second time a newly listed stock has slipped below its IPO price since Hong Kong overhauled its listing rules in August.
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- Fibocom Wireless Inc. fell 11.7% on its Hong Kong debut, the second IPO to drop below issue price since new rules in August 2024.
- Despite this, 78% of Hong Kong IPOs in 2025 gained on debut, with an average first-day rise of 38% and record oversubscriptions exceeding 9,000 times.
- Rule changes now favor institutional investors with up to 90% share allocation, reducing retail access and intensifying IPO demand.
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Who’s Who
- Fibocom Wireless Inc.
- Fibocom Wireless Inc., also known as 广和通无线有限公司, recently saw its shares fall 11.7% on its Hong Kong debut. This marked a rare decline for a new listing in the current Hong Kong IPO market, which has generally shown strong first-day gains. The company's performance contrasts sharply with the broader trend of successful IPOs in 2025.
- Dahon Tech (Shenzhen) Co. Ltd.
- Dahon Tech (Shenzhen) Co. Ltd. experienced massive oversubscription in its IPO, being oversubscribed by more than 7,500 times. This reflects the intense demand in Hong Kong's IPO market, where many new listings have seen significant investor interest despite recent regulatory changes. This company's IPO occurred within a period of high market euphoria.
- Golden Leaf International Group Ltd.
- Golden Leaf International Group Ltd. set a record for oversubscription in Hong Kong's IPO market, with its offering being over 9,000 times oversubscribed. This surge in demand reflects the current IPO frenzy in Hong Kong, where many new listings have seen significant investor interest despite recent rule changes.
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What Happened When
- August 4, 2025：
- The Hong Kong Stock Exchange introduced new rules to give institutional investors a greater role in pricing and allocation.
- After August 4, 2025：
- More than 15 IPOs in 2025 have drawn demand exceeding 1,000 times their offering size under the revamped regime.
- Since September 9, 2025：
- Shares of all 14 companies that listed had risen on their first day before Fibocom's debut.
- By October 22, 2025：
- The Hang Seng Index and the Hang Seng Tech Index are up 28.5% and 32.6%, respectively, so far in 2025.
- October 23, 2025：
- Shares of Fibocom Wireless Inc. fell 11.7% in their Hong Kong debut; this is the second time since the August overhaul that a newly listed stock has slipped below its IPO price.
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