Shares of Onewo Inc. opened lower on debut in Hong Kong, failing to give an initial pop, as investor sentiment remained cautious in an uncertain market.
The property services provider’s shares opened 7.6% lower at 45.60 Hong Kong dollars (US$5.81) a share on Thursday. The stock was recently down 7.1% at HK$45.85.
Onewo, majority-owned by developer China Vanke Co.
had raised HK$5.6 billion in net proceeds in the initial public offering after pricing its shares at HK$49.25 each.
Global IPO volumes have been tepid this year, as rising interest rates and inflation have soured investor appetite for new offerings. In Hong Kong, new and secondary listings have raised $7.5 billion so far this year, down 79% from the same period a year earlier, according to Dealogic data last week.
Onewo had priced its IPO at the midpoint of the price range of HK$47.10 to HK$52.70, giving it a valuation of US$7.34 billion.
Onewo offers community services such as home sales, rental brokerage, home decoration and furnishing services for property owners and residents. It also provides property and facility management services for developers, governments and other institutional clients.
The company intends to use the IPO proceeds to expand its business in first- and second-tier cities and for acquisitions.
Citic Securities, Citigroup and Goldman Sachs were joint sponsors on the deal.