Censure of C-Link Squared (1463) and 2 founder-EDs

Within days of the IPO, an amount equal to 50.8% of the net proceeds was paid out as non-refundable advance "service fees". We note that the market cap at the IPO price was HK$504m, just above the minimum $500m. We've seen that pattern several times and in some cases the fees may be a way to indirectly rebate the IPO proceeds to get listings done at an artificially high price. In this case, though, the stock took off and is now up over 6x since IPO, in a bubble in our view. Both the co-founders have resigned and sold their shares.

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