Inceptio Technology's grey market trading falls below its issue price: it once dropped by nearly 20% during the session and 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 delivers its first verdict on the enterprise's growth, valuation and fundamental quality.
By Peng Xiaoqiu, Wang Jing
On the eve of its listing, Econtrol Smart Drive (07687.HK), the world's first listed company focused on unmanned driving in global mining areas, presented a V-shaped trend on Futu's grey market. As of the close of the grey market at 18:30 on July 7, its price stood at HK$91.50, up 4.07% from the issue price of HK$87.92. However, this gain did not come easily, with the intraday amplitude reaching nearly 25%, which is a typical trend of breaking the issue price at opening, deep plunge in mid-session, and rebound in the late trading hours.
For in-depth coverage of Econtrol Smart Drive, please refer to On the Eve of Listing | After Cashing Out Over a Billion Yuan, He Drove the Mining Truck to the Hong Kong Stock Exchange
Econtrol Smart Drive was finally priced at the upper limit of its prospectus range HK$87.92, with an issued market value of about HK$13 billion and a total share capital of 148 million shares. On the grey market, the stock broke the issue price immediately after opening, opening at HK$82.70, about 5.9% lower than the issue price. It then kept falling, hitting the lowest point of HK$71.00 during the session, down 19.2% from the issue price, close to 20%.
The price 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 gain of Econtrol Smart Drive is not solid. The average transaction price on the grey market is HK$87.07, still slightly lower than the issue price. This means that most of the day's transactions took place below the issue price, and the late gain is more like a pullback before the market closes, indicating huge differences between bulls and bears. The trading volume is also relatively thin: the turnover is about HK$94.07 million, with a turnover rate of only 0.73%.
Calculated at the grey market closing price, the company has a market value of HK$13.53 billion. Based on its revenue of RMB 1.435 billion in 2025, its static price-to-sales ratio is about 8.2x, and about 7.9x based on the issue price. The company is still in a state of net loss, so the price-earnings ratio is not applicable.
It is worth noting that Cidi Smart Drive (03881.HK), which is also in the unmanned mining truck track and is the first listed intelligent driving company for commercial vehicles on the Hong Kong Stock Exchange, broke the issue price by 13.69% on its first trading day after listing on December 19, 2025, and did not rebound until several months later driven by catalysts such as being included in the Stock Connect scheme. Whether it can maintain the price on the first official trading day remains to be verified tomorrow.
Since 2026, more than 80% of new shares on the Hong Kong Stock Exchange have risen on their first trading day. The overall positive sentiment towards new share subscriptions is one of the backgrounds for the late rebound of this grey market trading. However, the proportion of public offering in this issuance is not high, and 8 cornerstone investors subscribed for about 50% of the offered shares with a 6-month lock-up period. The immediately tradable floating stock is relatively small. A small floating stock is a double-edged sword, which can be easily pulled up as well as easily smashed down, which also explains the nearly 25% amplitude of the grey market.
However, the grey market is not equivalent to official trading, as it is an over-the-counter market and does not represent the trend of the first trading day after listing. The trading volume and pricing after the official listing tomorrow (July 8) will be the real answer.