SHANGHAI (BLOOMBERG) - Shares of a manufacturer and distributer of computer components doubled in their Shanghai debut on Friday (Aug 12), heading for the second-biggest first-day pop among large listings in China this year.

Hygon Information Technology soared as much as 105 per cent to 73.80 yuan. Its offering raised 10.8 billion yuan (S$2.2 billion) following the sale of 300 million shares at 36 yuan each. It is the largest debut for the Nasdaq-like Star Board in 2022.

The Beijing-based company executed this year's third-largest listing in the Asian country, where big offerings are flourishing despite a slump in traditional initial public offering (IPO) venues. Mainland China IPOs mostly target local investors as capital controls make it harder for foreigners to participate, and they tend to pop when trading begins.

The stock will trade with no price limit in the first five sessions. It trimmed gains to 80 per cent as at 10.23am local time, heading for the second-best first-day pop among Chinese listings larger than US$1 billion (S$1.37 billion) this year.

About 80 per cent of debuts on mainland China bourses of offerings that raised at least US$500 million ended their first session in positive territory, data compiled by Bloomberg shows.

Hygon's share sale counted on strong demand from individuals and funds, with tranches reserved for retail investors oversubscribed by more than 2,500 times.

The issue price translates to a price-to-earnings ratio of 315.2 times as at the end of 2021, according to a company filing, compared with an industry average of 27.7 times.

In June 2019, the United States Department of Commerce included Hygon on a list that requires US companies to seek government approval before selling goods or services to such entities, according to the prospectus of the offering.

Proceeds will be used for research and development and a technology development reserve fund, among other things, according to a statement to Shanghai's exchange.