Two companies have been added to China's science and technology innovation board (STAR), making the number of firms trading on the tech investment board to 27. Xinhua Net reported the two new firms listed on the board to be "system-on-a-chip" maker Amlogic (Shanghai) Co. and laser-motion control systems firm Shanghai Friendess Electronic Technology Co.
Amlogic provided solutions for multimedia consumer devices, which included Smart TVs as well as Smart Home products capable of integrating into an Internet-of-Things (IoT) enabled home. The company opened its share price on Thursday at $19.4 dollars per share, about 253% from the offering price of $5.46 per share.
The company had revenue of $160 million during the first part of 2019, good for 10.85% year-on-year. The net profit connected to shareholders did tumble down by 18.3% a year ago, according to a document the company shared with the Shanghai Stock Exchange (SSE).
As for Shanghai Friendess, it had an issue price of around $9.73 as the company's share surged by 216% to around $30.77 at the open. The company's H1 revenue came up to $24.7 million, up by about 37.75% year-on-year. Its net profit attributed to company shareholders improved by 56.07% to $18.3 million.
Shine News reported that the shares in the STAR board were temporarily halted for 10 minutes to let it "cool down" after a 30% surge. In comparison, the mainstream Shanghai trading board has its price gains capped at around 44% on debut days. Trading swings, meanwhile, are kept at 10% per day for the duration of the trading.
The STAR market is China's latest board and it caters to companies which are focused on technology, as well as startups gearing for entry into the local tech market. It welcomes chipmakers, biotech firms, and other similar companies. The board is completely focused on helping these companies gain greater access to funding their projects and products.
Shares jumped up to 300% during the intra-day trading when compared to their IPO (initial public offering) price. The board gives each individual investor up to $14,000 from shares which can be bought through online subscription.
The STAR market, which started trading on July 22, was proposed in November 2018 with the idea to provide financing support for tech companies and start-ups. These are companies invested in the new generation information technology, new materials, new energy and energy-saving tech, environmental protection and advanced equipment sector.