OmniVision Integrated Circuits Group, Inc. has disclosed that the underwriters for its Hong Kong share offering have partially utilized the over-allotment option, commonly known as a greenshoe. According to a filing dated February 7, the action resulted in the issuance of 4.94 million H shares at a price of HK$104.80 per share.
The additional shares are scheduled to commence trading on the Hong Kong exchange on February 11, generating approximately HK$511.2 million in extra net proceeds for the company. This development follows the conclusion of the mandatory stabilization period on February 6, during which the stabilizing manager was authorized to support the share price.
The filing detailed that stabilization activities included an initial over-allocation of 6.87 million H shares and subsequent market purchases of 1.93 million shares at prices ranging from HK$103.00 to HK$104.80. The unexercised portion of the over-allotment option has now lapsed.
OmniVision's Shanghai-listed Class A shares (603501.SS) closed at 115.95 yuan on the previous trading day, marking a daily decline of 1.43% and a five-session drop of 4.33%. With mainland markets reopening on Monday, traders will monitor the performance of the Hong Kong-listed line now that formal price support mechanisms have been withdrawn.
The conclusion of the stabilization period is a significant milestone for any new listing, as it removes a designated buyer from the market, leaving the stock to trade based on organic supply and demand. The greenshoe mechanism is designed to help manage early trading volatility and meet investor demand, but its expiry can alter near-term share supply dynamics.
OmniVision is a China-based designer and distributor of semiconductor solutions, including digital imaging and display components for consumer electronics, automotive, and industrial applications. The company's next steps will be closely watched as the broader chip sector navigates a volatile environment, with investors assessing the timeline for returns on significant artificial intelligence infrastructure investments.
Key dates for market participants include the Shanghai market reopening and February 11, when the over-allotment shares begin trading in Hong Kong. Analysts will be observing early liquidity conditions and any potential impact on the A-share price as this incremental supply enters the market.