Reconova gray market opens at $24, falls 17.8% before HK listing

Reconova (07656.HK) gray market opened at $24, up 10.8% from its listing price, before sliding to $17.8 ahead of its July 8 debut on the Hong Kong Stock Exchange.

The gray market data, compiled by Futu and PhillipMart, showed divergent opening prints. Futu recorded an opening price of $24, while PhillipMart reported $28.5, representing a 31.6% premium to the listing price. Both data providers showed the stock settling near $18 by the end of gray market trading, a decline of roughly 17%.

Futu data showed 1.23 million shares traded with $26.77 million in turnover. PhillipMart recorded 578,000 shares changing hands and $11.9 million in turnover. The combined volume of approximately 1.8 million shares suggests active pre-listing interest despite the price pullback.

Gray market trading, conducted over-the-counter before the official listing, serves as an early indicator of investor demand. The divergence between the two data providers' opening prints points to fragmented liquidity in the pre-listing market, with the stock initially surging before giving up gains.

The price swing from a 31.6% opening gain to a 17% decline highlights uncertainty around demand for the newly listed company. Reconova is listing on the Main Board, and first-day trading on July 8 will provide a clearer signal on institutional and retail appetite. Investors will watch for stabilization above the listing price or further downside pressure in the opening session.

This article is for informational purposes only and does not constitute investment advice.