(Yicai Global) June 1 -- Stymied by poor market sentiment, only 3.18 million investors subscribed online for Altenergy Power System’s initial public offering on Shanghai’s Star Market, the lowest number since the Nasdaq-like board was set up in July 2019.

APsystem raised CNY3.26 billion (USD490 million) from the share sale, the Zhejiang province-based photovoltaic products manufacturer said on May 30. It intends to use the funds to build research and development centers, develop global marketing networks, and supplement working capital.

New listings on the Star Market have plunged below their offering prices since April, cooling investor appetite. According to public data, 13 new stocks went public on the tech-heavy board that month, and all closed below their initial prices on the first day of trading.

“The market was more volatile in April, with trading sentiment sluggish, so there were frequent slumps below issue prices in tech stocks,” a senior investment banker said.

Hwatsing Technology, which also launched an IPO subscription this week, has received just 3.57 million online investor subscriptions. The number of effective subscribers for CellWise Microelectronics was only 3.2 million, having launched its share offering in April.

“From the perspective of supply and demand, under the registration listing system [used by the Star Market], the supply of new stocks is so abundant that demand is under pressure and market funds are not enough to buy these new shares,” the banker said.

Editor:  Peter Thomas