Shares of GogoX Holdings slumped in their Hong Kong trading debut as the city's very first unicorn kicked off the return of the ceremonial gong after a two-year absence to mark a new initial public offering.

The logistics group fetched HK$21.60 in the first transaction, compared with its initial public offering (IPO) price of HK$21.50. The stock slid 22 per cent to HK$16.72 at the close of Friday trading, giving it a HK$10.4 billion (US$1.32 billion) market value.

GogoX's co-founder and co-chief executive Steven Lam struck the exchange's ceremonial gong with a mallet wrapped in red cloth at 9.30am to mark the commencement of trading. The last time such a ceremony was held was in March 2020 to mark the listing of SG Group Holdings, when an attendee tested positive for Covid-19.

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Hong Kong Exchanges and Clearing or HKEX as the bourse operator is known, moved all listing ceremonies online since then.

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The two-year silence in Hong Kong's listing hall matched the slump in the city's IPO fundraising, which fell to ninth place in the first six months of 2022 according to Deloitte, after topping the world in seven times in the past 13 years.

Before GogoX, 24 companies had sold shares in the city, raising a combined HK$17.8 billion, 92 per cent less than a year ago.

"The IPO market is very [closely] correlated to macroeconomic situations and investors' sentiment," HKEX's chief executive officer Nicolas Aguzin said during GogoX's listing ceremony. "We have seen very soft sentiments over the last few months globally. We hope that we would see more activities."

As many as 180 companies have already filed their listing applications, and are awaiting the opportune moment to go to market, Aguzin said.

"They are waiting in line, hoping to get listed," Aguzin said. "The outlook is good, and the market seems to be warming up."

GoGoX counts this newspaper's owner Alibaba Group Holding and its subsidiaries among its shareholders. The start-up had originally attempted to tap the market in February with a higher target of US$500 million, but postponed the deal after the Hong Kong stock exchange asked for additional information, according to people close to the transaction.

The firm eventually raised HK$670.8 million of gross proceeds before it issued a further 4.68 million shares in an overallotment. The company said it plans to use the funds to accelerate international expansion, particularly in Southeast Asia.

GoGoX has reported losses for four years in a row, and its losses increased 32.6 per cent to 873 million yuan (US$130 million) in 2021. Revenue rose 24.5 per cent to 660 million yuan last year, with 317 million yuan coming from the overseas markets and 343 million yuan from the mainland. The company said in its IPO prospectus that it expects to record losses until 2024.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2022 South China Morning Post Publishers Ltd. All rights reserved.

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