Inceptio Technology trades below its issue price in the grey market: the stock once plunged nearly 20% during intraday trading and finally closed 4% higher | Bell-ringing Moment
The "Bell Ringing Moment" column focuses on the critical moment when an enterprise officially lands on the capital market. After every bell ringing, the market gives its first verdict on the growth, valuation and quality of the enterprise.
By Peng Xiaoqiu, Zhang Xiaoqian, Zhang Weiyao
On the eve of its listing, Inway Intelligent Driving (07687.HK), the world's first listed company focused on autonomous driving for mining areas, traced a V-shaped trend on Futu's grey market. As of the grey market close at 18:30 on July 7, the stock closed at HK$91.50, up 4.07% from the issue price of HK$87.92. This rally did not come easily, with an intraday amplitude of nearly 25%, presenting a typical pattern of breaking the issue price at opening, plunging sharply during the trading session, and rebounding in late trading.
For in-depth reports on Inway Intelligent Driving, please see On the Eve of Listing | After Cashing Out Billions, He Steered the Mining Autonomous Driving Business to the Hong Kong Stock Exchange
Inway Intelligent Driving was finally priced at the upper limit of the offering range at HK$87.92, with an issued market value of about HK$13 billion and total share capital of 148 million shares. In today's grey market, the stock broke the issue price immediately after opening, at HK$82.70, about 5.9% lower than the issue price. It then went down all the way, hitting an intraday low of HK$71.00, down 19.2% from the issue price, nearly 20%.
It then rebounded step by step, peaking at HK$92.70 (+5.4%), and closing at HK$91.50, with an intraday amplitude of 24.68%.
In fact, the rally of Inway Intelligent Driving is not solid. The average transaction price in the grey market is HK$87.07, still slightly lower than the issue price, which means that most of the transactions throughout the day occurred below the issue price, and the late trading rally looked more like a pull-up before the close, with significant divergence between bulls and bears. Trading was also relatively light, with a turnover of about HK$94.07 million and a turnover rate of only 0.73%.
Calculated based on the grey market closing price, the market value is HK$13.53 billion. Based on its 2025 revenue of RMB 1.435 billion, the static price-to-sales ratio is about 8.2x, and the ratio based on the issue price is about 7.9x. The company is still in net loss, so the P/E ratio is not applicable.
It is worth noting that CIDI Intelligent Driving (03881.HK), which is also in the unmanned mining vehicle track and is the first commercial vehicle autonomous driving stock on the Hong Kong Stock Exchange, broke its issue price by 13.69% on the first day of listing on December 19, 2025, and did not rebound in the following months until boosted by catalysts such as its inclusion in the Stock Connect scheme. Whether the price can hold up on the first day of official listing remains to be verified tomorrow.
Since 2026, more than 80% of new stocks on the Hong Kong Stock Exchange have risen on their first trading day. The overall strong sentiment for new share subscription is one of the backgrounds that supported the late-trading rebound in the grey market. However, the proportion of public offering in this offering is not high, 8 cornerstone investors subscribed for about 50% of the offered shares with a 6-month lock-up period. The immediately tradable float is relatively thin, which is a double-edged sword that can be easily pulled up as well as hit down, explaining the nearly 25% amplitude in the grey market.
However, the grey market is not equivalent to official trading. It is an over-the-counter market and does not represent the trend on the first day of listing. The trading volume and pricing after the official listing tomorrow (July 8) will be the real answer.