Folding bike leader Dahon Technology Industrial (02543.HK) was officially listed on September 9 on the Hong Kong Stock Exchange, becoming the first Hong Kong-listed company from mainland China specializing in folding bicycles. Founded by Dr. David T. Hon, widely recognized as the “Father of the Modern Folding Bike,” Dahon raised HK$392 million through its IPO at an offer price of HK$49.5 per share, drawing strong attention from the market.

A New Record in Hong Kong IPO History

Dahon’s IPO sparked extraordinary investor enthusiasm. The public offering attracted margin subscriptions totaling HK$262.194 billion, compared to just HK$39.2 million raised through the public tranche. This resulted in an oversubscription ratio of 6,688 times, setting a new record and surpassing the previous 6,288-times record set by Most Kwai Chung (01716) in 2018. Despite the absence of a clawback mechanism, a small reallocation of shares lifted the public offering portion to 15% of the total issuance.

Industry Leader with Strong Market Share

Founded in 1982, Dahon has pioneered folding bicycles for more than four decades. Dr. Hon, now 83, continues to be actively involved in the company’s operations. In 2024, Dahon commanded a 26.3% market share by retail volume and 36.5% by retail value in mainland China, maintaining its position as the undisputed leader in the folding bike sector. The company’s portfolio covers more than 70 models across premium, mid-range, and entry-level categories, catering to a wide range of consumer needs.

Financial Growth and Strategic Plans

Dahon reported revenue of RMB 450 million in 2024, up 50.2% year-on-year, with net profit and total comprehensive income rising 50.1% to RMB 52.3 million. The IPO attracted four cornerstone investors — Allianz Global Investors Asia Pacific, Greater Bay Area Fund, Harvest, and Vico Hong Kong — subscribing for shares worth a total of US$12.76 million.

According to the prospectus, the net proceeds from the IPO will be allocated as follows:

30% to modernize production systems and scale up operations

30% to strengthen the distribution network and brand development

30% to enhance R&D capabilities

10% for working capital and general corporate purposes

With its successful listing and historic IPO performance, Dahon is poised to further expand its leadership in the global folding bike industry while driving innovation and sustainability in urban mobility.