Zhawei Machinery & Electronics (02692) commenced trading on its first day of listing. The company set its IPO price at HKD 71.28 per share, issuing a total of 26.7483 million shares, with each board lot consisting of 100 shares. The net proceeds from the offering are estimated to be approximately HKD 1.828 billion. At the time of writing, the stock rose 9.43% to HKD 78, with a turnover of HKD 161 million.

Public information indicates that Zhaowei Machinery & Electronics is the largest integrated micro transmission and drive system provider in China. According to a Frost & Sullivan report, the company ranks as the fourth largest global provider in this sector, holding market shares of 3.9% and 1.4%, respectively. The global market for integrated micro transmission and drive systems is noted for being highly fragmented.

The company designs and manufactures micro transmission and drive systems, along with related components, primarily serving customers in China, followed by overseas clients. Notably, the Shanghai Stock Exchange announced that, as Zhaowei Machinery & Electronics has listed H-shares on the Hong Kong Stock Exchange and does not fall under the price stabilization mechanism, and its corresponding A-shares have been listed for more than 10 trading days, the company will be included in the Hong Kong Stock Connect program. This adjustment will take effect from the next Hong Kong Stock Connect trading day, starting March 9.