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Colibri Technologies Goes Public in Shenzhen, Hits Price Ceiling on First Day
COVID-19 and China
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Colibri Technologies (002957:SZ) saw its share price hopping over the +44% bar. It jumped from initial CNY 15.10 (USD 2.19) to CNY 21.74 (USD 3.16) on the first day of trading on the Shenzhen exchange's SME board.

While the Shanghai bourse is attracting investors to the newly opened Star Market, its Shenzhen counterpart is carrying out successful IPOs, too.

Colibri's business is concentrated around three product lines: automated testing and assembly equipment, automated equipment accessories, precision machining tools and dies. Its expertise spans various industry verticals, including communication, medicine, automotive and electronics.

Colibri is striving to become a leading company in precision automation. The firm raised an undisclosed amount in its Series A funding led by Legend Capital (君联资本) in October 2016 -- the only round of financing undertaken by Colibri to date.

The firm generated an operating income of CNY 828.8 million (USD 120.5 million) in the first half of 2019, growing by 17.17% year-on-year. Its gross profit climbed an extra 49.52% from CNY 80.39 million (USD 11.68 million) to CNY 120.2 million (USD 17.47 million) within the same period. This positive shift is closely related to the recent changes in the company's downstream structure: a number of new energy enterprises have lately appeared there.

According to the prospectus, prior to the IPO, the company had 17 shareholders holding 369 million of its shares. Colibri sold another 41 million (only 4.1 million of which were issued offline) on its IPO day, raising CNY 619 million (USD 89.97 million).

Since it was established in 2004, the SME board has been widely considered a 'barometer of the manufacturing sector in China.' After the recent financial reform, the Shanghai Stock Exchange Star Market might usurp this status.

ANALYST
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