On June 5, Lung Fung Group declined 19.31% in regular trading on its first day of listing, trading at HK$4.40 per share with turnover of approximately HK$158 million. The stock broke well below its IPO offer price of HK$5.18, which was already set at the lower end of the indicative range of HK$5.18–6.38.

The sharp decline reflects weak institutional confidence. Despite retail public offering subscription reaching 664.92 times oversubscribed, the international placement received only 3.18 times subscription, signaling limited professional investor appetite. Critically, the IPO had zero cornerstone investors — no institution was willing to commit to a lock-up subscription — a significant negative signal in the Hong Kong IPO market. Analysts noted this lack of institutional backing, combined with the company's high leverage (net current liabilities of HK$397 million as of November 2025) and a pre-IPO dividend of HK$255 million paid to existing shareholders, eroded market confidence.

Lung Fung Group is a Hong Kong-based chain retailer of beauty, health, and pharmaceutical products, currently operating 31 stores with over 49,000 SKUs and more than 600 suppliers.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)