Summary of Key Points
On August 19th, Yushu Technology made its debut on the STAR Market, and its stock price experienced a rollercoaster ride on the first day of trading: The issue price was 150.8 yuan (with a market value of 61 billion yuan), but the opening price soared to 1100 yuan (raising the market value to 444.9 billion yuan, an increase of 629%). Subsequently, the stock price fluctuated and fell back to just over 800 yuan. Early investors in the primary market (including Meituan, Sequoia Capital, Shunwei Capital, etc.) saw a huge increase in their paper wealth due to purchasing shares at the “floor price”; some ordinary investors who won the lottery tickets made a profit of 470,000 yuan, while others missed out on the opportunity. However, the substantial gains for these institutional investors are still just on paper, as they are restricted from selling their shares for a certain period.
I. Stock Price on the First Day of Trading: From “Rocket Launch” to “Rollercoaster”
The stock price movement on Yushu’s debut day was akin to a giant swing at an amusement park, sending secondary market investors’ hearts racing.
With an issue price of 150.8 yuan per share, which already represented a market value of 61 billion yuan, the opening price of 1100 yuan meant each additional share cost 949 yuan. The total market value instantly jumped to 444.9 billion yuan (more than a sixfold increase). But happiness was short-lived as the price quickly dropped below 900 yuan, reaching as low as just over 800 yuan, and then continued to fluctuate up and down. For ordinary investors who bought shares that day, every 1% change in price meant a corresponding change in their investment—buying 100 shares could result in a profit of over 800 yuan with a 1% increase or a loss of over 800 yuan with a 1% decrease. How could they not feel anxious?
II. Institutional Investors: Those Who Got In Early Made Big Profits
Yushu’s shareholder list includes almost half of the tech investment community, and these institutions acquired shares at low prices early on, now reaping the benefits of the skyrocketing stock price:
- Meituan Group: The largest external shareholder, holding 9.65% of the shares before the IPO, which was diluted to 8.68% after the listing. Based on the opening market value of 444.9 billion yuan, their paper profit is approximately 38.6 billion yuan. They entered the investment in 2020-2022 when Yushu’s valuation was only a few hundred million to over a billion yuan; now, their investment has multiplied by several hundred times.
- Sequoia China: One of the earliest investors, investing 15 million yuan for a 10% stake in 2019 when Yushu’s value was only 150 million yuan. They later made additional investments, totaling over 100 million yuan, resulting in a paper profit of at least several dozen times their initial investment.
- Shunwei Capital: Invested 38.7 million yuan in 2021 when Yushu’s valuation was 380 million yuan; now, this investment corresponds to a market value of 17.7 billion yuan, representing a return of over 450 times.
The common factor among these institutions is that they invested before Yushu became a hot topic, allowing them to buy shares at extremely low costs and ensuring a profit regardless of subsequent price fluctuations.
III. Ordinary Investors: Some Made Huge Profits, Others Regretted Their Decisions
Compared to institutional investors, the situation for ordinary investors was more straightforward:
- Lucky Winners: Those who won lottery tickets to buy 500 shares at the issue price of 150.8 yuan had to pay 75,400 yuan each. If they sold their shares immediately upon opening, they would have made a profit of 949 yuan per share, amounting to 474,600 yuan—equivalent to half a year’s or even an entire year’s salary for most people.
- Those Who Missed Out: Some investors were concerned about the stock price falling below the issue price before the listing and thus gave up their lottery tickets. Seeing others making such large profits, they must be deeply regretful. There are also those who didn’t win tickets and are eager to buy “new share allocation rights” from scalpers, indicating the high demand for Yushu’s shares.
IV. Paper Wealth ≠ Real Money: Institutional Investors’ Funds Are Still “Locked Up”
Although these institutions have paper profits in the billions, they cannot cash out yet due to lock-up periods (for example, they are not allowed to sell their shares for 6 months or a year after the listing). In other words, the current billions are just figures; they can only be converted into real money once the lock-up period is over. However, this period is not a significant issue for them given their low investment costs—considering Sequoia’s initial investment of 15 million yuan, even if the stock price dropped to 100 yuan (below the issue price), they would still have made a profit.
V. The “Magic” of Yushu: Why Would Capital Invest So Heavily?
Yushu’s ability to increase its valuation from a few hundred million to several billion yuan lies in its position at the forefront of the robotics sector, particularly in humanoid robots, which is seen as the next trillion-dollar market. As a leading company in this field, Yushu naturally attracts capital investment. This ability to create a compelling narrative (professionally known as “capital storytelling”) is highly difficult for other companies to replicate; not every company can convince investors that it will become the next tech giant.
In summary, Yushu’s listing was a “wealth-making event”: Institutional investors benefited from their early investments, while ordinary investors relied on luck. Behind this was the market’s fervent belief in the robotics sector. However, for ordinary investors, chasing high prices requires caution, as such large price fluctuations can easily turn them into victims of market volatility.