Shares of Beijing Xunzhong Communication Technology (02597.HK) plummeted 9.08% in early trading on Wednesday, marking a disappointing debut on the Hong Kong Stock Exchange. The steep decline comes after the cloud-based communication service provider priced its initial public offering (IPO) at the bottom end of its indicative range.

XUNZHONG had set its final offer price at HK$13.55 per share, raising net proceeds of HK$367.5 million from the IPO. The pricing decision appears to have dampened investor enthusiasm, leading to the significant sell-off as trading commenced. The company's public offering was 12.79 times subscribed, while the international offering was only slightly oversubscribed at 1.01 times, potentially indicating lukewarm interest from institutional investors.

The sharp decline in XUNZHONG's stock price on its first trading day suggests that investors may be concerned about the company's valuation or broader market conditions affecting the tech sector. As the trading session progresses, market participants will be closely watching to see if the stock can recover from its initial plunge or if the downward trend continues.