Direct Drive Tech Launches HK$1.08 Billion Hong Kong IPO
Direct Drive Tech (HKG:6731) launched its Hong Kong initial public offering on Monday, seeking to raise up to HK$1.08 billion.The China-based robotics technology company is offering 50.0 million H shares at HK$21.60 each, according to a filing with the Hong Kong Stock Exchange.The offering comprises 2.5 million shares for Hong Kong investors and 47.5 million shares for international investors, subject to reallocation and the overallotment option.Allocation results are due by Sept. 28, ahead of the company's planned trading debut on Sept. 29.The proceeds will be used mainly to enhance R&D capabilities in key robotics technologies, deepen collaboration with industry partners and expand the sales network, and improve production capabilities and efficiency.The company also plans to use the remaining proceeds for working capital and general corporate purposes.The IPO has two cornerstone investors, HK Technology Innovation and JSC International (for and on behalf of Shenghai SP), which have committed to subscribe for a combined HK$472 million worth of shares.CITIC Securities (Hong Kong) is serving as the sole sponsor, while CLSA is acting as sponsor-overall coordinator and overall coordinator.CLSA, China Harbour International Securities, CMB International Capital and Futu Securities International (Hong Kong) are acting as joint global coordinators, joint bookrunners, joint lead managers and capital market intermediaries.
