Hotai Leasing Share Lottery Draws Investors With Wide Price Gap

Hotai Leasing Corp. (7855), a vehicle-rental company under the Hotai Motor group, is attracting investor attention as its public share offering is priced well below the recent market level. Retail investors can enter the lottery through their brokerage apps, but an allocation does not guarantee a profit. The eventual return will depend on the share price and liquidity when successful applicants are able to trade the stock.

Subscriptions will run from July 30 through Aug. 3 at an underwriting price of NT$42 a share. The reported potential gain of NT$59,000 for one 1,000-share lot implies a reference market price of about NT$101 a share, before fees and taxes. Brokerages will earmark or debit the required funds during the lottery process, creating a financing and opportunity cost, while a drop in the stock price could narrow the spread or leave successful applicants with losses.