Successful small IPO by pawnshop surprises Hong Kong bourse

Oi Wah Pawnshop Credit Holdings sees IPO oversubscribed by over 1,000 times.

The first first-ever IPO by a pawnshop has given the investment community a pleasant surprise with some saying it could be the catalyst that injects life back into Hong Kong's unexciting IPO market. Oi Wah’s $12.9 million IPO jumped over 30% on its debut on Tuesday.

Analysts said the success of Oi Wah can be traced to its unique offering and reasonable price, two factors necessary for a firm to have a blockbuster listing in Hong Kong.

Hong Kong's once red-hot IPO market witnessed a 65% drop in total funds raised in 2012 compared to 2011. Hong Kong now holds fourth place in the global rankings for IPOs in 2012, after coming in first place from 2009-2011.