Shares in Maoyan Entertainment, which is backed by Chinese internet giant Tencent (TCEHY), fell as much as 5.4% in early trading Monday. The stock closed down 1%.
Maoyan had already priced its shares at the bottom of its targeted range for the IPO, raising about $250 million. That's far short of the $1 billion it had reportedly been seeking to raise.
A series of high-profile Chinese tech companies have listed in Hong Kong in the past year only to see their shares tank, raising concerns for similar firms that are mulling a listing in the city.
Smartphone maker Xiaomi has plunged nearly 40% from its $4.7 billion IPO in July, and online services company Meituan has dived 21% since its $4.2 billion listing in September. They went public during a volatile period for stocks in Hong Kong, which entered a bear market in early September.
Maoyan dominates online movie ticket sales in China, accounting for about 60% of the market, according to data from Chinese analytics company iResearch cited in the company's IPO prospectus. It was originally part of Meituan but was spun off as a separate company in 2016.
Like many tech companies that go public, Maoyan is not yet profitable. It reported an operating loss of 142 million yuan ($21 million) for the nine months ended in September.
China is the world's second-largest movie market, with box office revenue growing 9% in 2018 to 60.98 billion renminbi ($9 billion), according to state media.
China is widely expected to overtake the United States in movie ticket sales in the coming years.
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