Anker gray market slips 6.5% ahead of July 2 Hong Kong debut

Anker (00668.HK) gray market shares last traded at $92.90, down 6.5% from the listing price on Futu ahead of its July 2 debut on the Hong Kong exchange.

Futu data showed the stock opened up 0.7% at $100 before reversing, with 381,600 shares changing hands and turnover of $35.56 million. PhillipMart data recorded a steeper opening decline of 9.4% to $90, with shares last at $93 on volume of 302,000 shares and turnover of $27.9 million.

The divergent gray market prints indicate ongoing price discovery ahead of the Main Board listing. Anker has not yet disclosed the final offer price, deal size, or cornerstone investor commitments for the IPO. The company's valuation relative to sector peers will depend on the pricing outcome, which remains undisclosed.

Gray market trading, where shares change hands before official listing, often provides an early read on investor sentiment. The gap between the opening and last prints across the two platforms suggests uncertainty around the company's valuation. Hong Kong stock quotes are subject to a minimum 15-minute delay, meaning the last printed prices may not reflect real-time trading conditions.

The gray market typically sees lower liquidity than the primary exchange, which can amplify price swings. Combined turnover across the two platforms reached approximately $63.5 million, indicating active pre-listing interest despite the price weakness. The volume of more than 680,000 shares traded across both platforms suggests meaningful retail and institutional participation in the pre-debut session.

A successful listing on the Hong Kong Main Board requires SFC approval and compliance with listing rules, including minimum market capitalization and public float requirements. The company's debut on July 2 will mark the completion of its IPO process.

In a related development, Citi said NTES-S (09999.HK) switching to a dual primary listing in Hong Kong could drive positive capital inflows, highlighting the city's continued appeal as a listing destination for companies seeking access to Chinese and international investors. The move by NetEase follows a broader trend of Chinese companies opting for dual-primary structures in Hong Kong to mitigate delisting risks from US exchanges.

The gray market weakness points to cautious sentiment ahead of Anker's debut. Investors will watch first-day trading on July 2 for a clearer signal on demand and valuation support. The stock's performance on opening day will also serve as a benchmark for other companies considering Hong Kong listings in the second half of 2025.

This article is for informational purposes only and does not constitute investment advice.