(Yicai Global) June 28 -- The 2.75 million investors who stormed trading platforms yesterday to buy shares of HYC Technology, the first business to sell shares on the Shanghai Stock Exchange's new Star Market, have only a slight chance of succeeding as the expanded online offering was still oversubscribed more than 2,500 times. 

Applicants have just a six basis points chance of landing any shares in HYC, the bourse said in a statement yesterday. The odds are 45 percent steeper than the average for initial public offerings on the mainland since 2016, it added.

Due to excessive demand, the Suzhou-based firm, which makes chip testing systems for Apple, Samsung and LG Electronics, expanded its online offering by a half to 11.5 million shares and scaled back its offline issue to 27 million.

The Star Market has stringent requirements for investors to curb risks. Each investor must have at least CNY10,000 (USD1,454) in assets to even begin trading. An investor may hold a maximum of one-1,000th of a firm's shares outstanding, which is 7,500 shares in the case of HYC Technology.

The massive oversubscription confirms expectations of intense interest in the widely anticipated new trading venue. The Nasdaq-style market, formerly known as the Science and Technology Innovation Board, was officially launched on June 13 and aims to make it easier for tech startups to secure funding.

As of yesterday, 27 companies had passed the new market's IPO review in the process. Three more are expected to issue shares next week. Sixteen others are filing applications.

HYC's price-to-earnings ratio is 41.08, based on the issue price of CNY24.26 (USD3.50). This leaves space for investors to make a profit, as the price is expected to double on the first day of trading, Fu Lichun, research director of Northeast Securities, told Beijing News. The sector's average P/E ratio was 31.11 as of June 24, according to the China Securities Index.  

Editor: Emmi Laine