AsianFin -- Shares of Bloks Group Ltd., a prominent Chinese maker of Ultraman and Transformers figurines, soared 82% in their Hong Kong trading debut after its $215 million initial public offering (IPO) garnered overwhelming interest from retail investors.
The Shanghai-based company opened at HK$109.60 per share on its first day of trading, a sharp rise from its IPO price of HK$60.35.
Bloks' debut reflects the surging popularity of Chinese toy companies. The offering saw unprecedented demand from individual investors, with bids exceeding the number of shares allocated to them by thousands of times. This trend mirrors the success of companies like Pop Mart International Group Ltd., whose PUCKY Roly Poly Kitty toys and celebrity endorsement by Blackpink’s Lisa have fueled quadrupled valuations in the past year.
“There’s certainly a positive halo around the games and general entertainment space,” said Benjamin Harburg, managing partner at Magic Stone Alternative Investment Ltd. “While Chinese appetite for high-end retail is waning, mass-market, lower-ticket items are thriving across sectors.”
Bloks' IPO frenzy was further amplified by widespread availability of zero-interest loans, which allowed retail investors to secure HK$879 billion ($113 billion) in margin financing, a figure approximately 6,000 times the shares initially set aside for them.
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