On September 28, shares of RA MATERIALS, an A+H listed company, entered grey market trading in Hong Kong, ahead of their official debut on the Hong Kong Stock Exchange on September 29.
The grey market session delivered a dramatic turn of events: the Phillip grey market system displayed an extreme quote that briefly fell to HK$0.985, a plunge of 97.73% from the HK$44 offer price. Excluding that erroneous trade, the grey market closed at HK$36.62, down 16.77% from the offer price, leaving a paper loss of HK$738 per board lot and falling short of expectations for new share subscription returns.
Extreme Erroneous Trade in Grey Market, Tiny Volume Does Not Alter Overall Pricing
The unusual move occurred on the Phillip broker grey market, where an extreme low price of HK$0.985 appeared at the opening, a decline of nearly 98%, and quickly spread across investor communities.
However, trading data showed that only a small number of shares changed hands, a classic erroneous order caused by a miskeyed trade rather than genuine large-scale selling. After the brief anomalous quote, the market quickly corrected and the price returned to the range above HK$36.
New Materials Leader's Hong Kong IPO, Dual Drivers of Photoresist and Rubber Additives
RA MATERIALS is a domestic platform-type new materials company whose A-share entity is listed in Shanghai; its Hong Kong listing is a secondary H-share listing.
The company has two core businesses. The first is globally leading phenolic resin rubber additives for tires, holding a top-tier global market share. The second is semiconductor photoresist, with布局 in ArF and KrF photoresist materials, making it one of the few domestic manufacturers to achieve industrialization of photoresist, covering the semiconductor and display panel industrial chains.
The H-share offer price was set at HK$44, raising approximately HK$3 billion, with proceeds directed toward research and development investment, production line upgrades, capacity expansion and other areas.
During the subscription period, investor interest was relatively weak, reflecting in advance the cautious attitude of primary market funds toward this IPO. Combined with cyclical fluctuations in the chemical new materials industry and the slow pace of demand recovery for semiconductor materials, investors held divergent views on the company's medium- to long-term earnings delivery.
Market Volatility and Impact on Investors
The unusual grey market move also touched a nerve among cornerstone investors.
Its cornerstone investors include eight institutions such as CITIC Bank International Investment, Full Truck Alliance, Golden Valley Master under Lin Lijun, and Goldshore under Wang Xuning, which together subscribed US$126 million (approximately HK$988 million).
Based on a static calculation using the grey market closing price, the cornerstone holdings already showed paper losses to varying degrees, but the cornerstone allotted shares carry a six-month lock-up period, so short-term grey market price fluctuations cannot be realized as actual losses.
It is worth noting that RA MATERIALS was already listed in the A-share market in 2018. As of today's close, RA MATERIALS' A-share price was 65.5 yuan, with a market value of 40.4 billion yuan.
Following this H-share issuance and listing, RA MATERIALS will formally establish an A+H dual-listing structure.
RA MATERIALS will officially list in Hong Kong tomorrow. Whether it can win market recognition will depend on its industry position, financial performance and the market's long-term confidence in new materials. The company's revenue in the first half of 2026 was 2.136 billion yuan, with profit of 389 million yuan during the period, keeping its fundamentals stable.