--- title: "[HK IPO] Haitian Flavouring & Food Company rebounds to IPO price! What stock can the greenshoe stabilize? (Includes comments on WeLigent Biotech's grey market)" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/32181402.md" description: "Last week, we explained in detail the mechanism and logic of the greenshoe. Today, I’ll add a few more words, mainly because $HAITIAN FLAV(03288.HK)’s greenshoe period ended last Wednesday (July 16) (closing price: 36.4). Guess what? Hey, this guy actually rose back to the IPO price (36.3). Then, the very next day after the greenshoe execution was completed, the stock price plummeted by 2.47%, ranking as the second-largest drop among all trading days since its listing. It seems the greenshoe really does have some effect, so I wanted to look into it further..." datetime: "2025-07-24T09:10:40.000Z" locales: - [en](https://longbridge.com/en/topics/32181402.md) - [zh-CN](https://longbridge.com/zh-CN/topics/32181402.md) - [zh-HK](https://longbridge.com/zh-HK/topics/32181402.md) author: "[每天打个新](https://longbridge.com/en/profiles/16231871.md)" --- # [HK IPO] Haitian Flavouring & Food Company rebounds to IPO price! What stock can the greenshoe stabilize? (Includes comments on WeLigent Biotech's grey market) Last week, we detailed the mechanism and logic of the greenshoe. Today, I’ll add a few more words, mainly because $HAITIAN FLAV(03288.HK) ended its greenshoe period last Wednesday (July 16) at a closing price of 36.4. Guess what? It actually rebounded to the IPO price (36.3). ![Image](https://pub.pbkrs.com/uploads/2025/13d4eb21b415d0b25039e56df2454171?x-oss-process=style/lg) Then, the very next day after the greenshoe was executed, the stock price dropped sharply by 2.47%, ranking as the second-largest decline among all trading days since its listing. It seems the greenshoe really works. So, I wanted to study which stocks could rebound before the end of the stabilization period if they fell below the IPO price. Is there profit potential in buying these dips? So, I analyzed recent stocks that fell below the IPO price in the gray market or on the first day but had a greenshoe, to see how they performed. First, let’s look at those where the greenshoe wasn’t fully used before the stabilization period ended, leaving some capacity. There are four: Chifeng Gold, Nanshan Aluminum International, Haitian Flavouring, and Sanhua Intelligent Control. ![Image](https://pub.pbkrs.com/uploads/2025/e017569743d3da1ab153ca2544bf82b9?x-oss-process=style/lg) Among these four, Chifeng Gold and Sanhua Intelligent Control had already risen by over 20% by the time the greenshoe expired, so they didn’t need it much. In contrast, Nanshan Aluminum International and Haitian Flavouring relied heavily on the greenshoe, barely pulling back to the IPO price. The next day after the greenshoe expired, both stocks dropped. Additionally, these four stocks either didn’t trigger clawback or had over 500x margin financing with clawback exemptions, keeping the clawback ratio below 30%. This sets the stage for comparing them with stocks where greenshoe stabilization failed. No more suspense—let’s look at the stocks where stabilization failed. ![Image](https://pub.pbkrs.com/uploads/2025/0820566c5fecbd21e5224de5a10f7546?x-oss-process=style/lg) Here, stabilization failure means the greenshoe was exhausted early. Except for Yibin Bank (no clawback), the others had clawbacks of 30% or more. Strictly speaking, Yibin Bank didn’t fail—its stabilization period ended on February 7, and the greenshoe was exhausted on February 5, just two days early. By the end, its price matched the IPO price. Thus, the first conclusion: with clawbacks of 30% or more, if the stock falls below the IPO price and retail investors sell heavily, stabilization is harder because greenshoes are typically fixed at 15%. Next, the four stocks that exhausted their greenshoe on the first day share a common trait: they dropped over 10%. So, the second conclusion: if a stock with a greenshoe drops over 10% on the first day (when greenshoe usage is hard to track), it likely faces heavy selling pressure, and the greenshoe can’t stabilize it—time to exit. Also, whether stabilization succeeds or fails, the stock price usually drops the next trading day after the greenshoe is exhausted or expires. This can be a signal to cut losses. Among the five stocks where stabilization failed (excluding Yibin Bank), except for CaoCao Mobility, the other four saw their losses widen significantly by the greenshoe expiry date (CaoCao Mobility’s loss narrowed by just 5 percentage points). So, if the greenshoe can’t stabilize, don’t hold onto hope—cut losses early. Which stocks are worth betting on for greenshoe stabilization? Those with public placement below 15x (small retail float) or clawback exemptions, plus large A+H shares with sustained profitability. Data shows these two types have higher greenshoe effectiveness—worth buying dips to profit from the greenshoe. Summary: If you misjudge or buy a "dud" in the gray market, and the clawback ratio is high with heavy pressure, cut losses decisively. Blind faith in the greenshoe may worsen losses. $LEADS BIOLABS-B(09887.HK) Gray Market Review The gray market opened with a surge of over 130%! I placed an order at 80 but was too slow to execute. Finally sold two lots at 68, keeping two for the first day. Another five-star stock soaring—congrats to those who got allocations! Assistant, hurry with the celebratory post @DailyIPOAssistant ![Image](https://pub.pbkrs.com/uploads/2025/3da92cdcf062e478c6f50e0a7989f897?x-oss-process=style/lg) ### Related Stocks - [03288.HK](https://longbridge.com/en/quote/03288.HK.md) - [603288.CN](https://longbridge.com/en/quote/603288.CN.md) - [09887.HK](https://longbridge.com/en/quote/09887.HK.md) ## Comments (1) *1 comments available on the platform.*