The underwriting price of Hante's listing on the OTC market is NT$2,250, setting a record for the highest IPO price in Taiwan.

Hante is expected to officially transfer from the new market to the market on September 22, and the public subscription period will be from September 10 to 14. The underwriting price is tentatively set at NT$2,250 per share, setting a record for the highest IPO price in the history of Taiwanese stocks. (File photo)

[Financial Channel/Comprehensive Report] The emerging OTC stock Wang Hanchai (7856) will be listed on the OTC market on September 22, and public subscription will begin on September 10. Because there is a significant difference between the underwriting price and the market price, many investors are attracted to rush to take advantage of the lottery market. However, the underwriting price of Hante is as high as 2,250 yuan per share. If you want to participate in the subscription, you must first prepare a large amount of funds, which also makes some investors start to think about whether it is worth borrowing money to win the lottery.

Recently, some investors posted on Threads asking, "Is it worthwhile to borrow money for 4 days by pledging stocks at a 3.96% interest rate for the Chinese lottery draw?" After the news was exposed, it immediately triggered a heated discussion among netizens, with many people expressing their opinions on the borrowing costs, winning rate and potential profit margins.

Please read on...

Some netizens believe that if the loan is only for a few days, the actual interest generated is not high. "With only a few days of interest, what is there to consider?" Some even bluntly said that if the investor already has enough stocks to pledge, the borrowing amount may not be large compared to its asset size, and the short-term interest cost is relatively limited.

Some netizens describe this subscription as "lottery" and believe that spending a small amount of interest in exchange for the opportunity to draw lots, and if you have the opportunity to earn the price difference after winning the lottery, is still attractive. Other netizens believe that if you can only borrow for 4 days, the interest will be calculated based on the number of days, and the cost is relatively limited, so they are considering paying a fixed deposit or selling stocks to raise funds for the subscription.

However, another group of netizens holds the opposite view, believing that the key to public subscription is still the winning rate. "It may not be cost-effective if you get the lottery, and you will definitely lose money if you don't get the lottery." If you pay extra interest on the loan in order to participate in the lottery, if you don't get the lottery, not only will you not earn the price difference, but you will also have to absorb the capital cost yourself.

Some netizens even used the past popular subscription case "Zang Sushi (2754)" to remind investors that although the public subscription of popular stocks seems to have high reward opportunities, the actual winning results are still highly uncertain.

It is worth noting that the underwriting price of this Han test is 2,250 yuan. Calculated on a single stock basis, the funds required for subscription amount to 2.25 million yuan, which is not a small amount for ordinary investors. If you raise funds through stock pledge, etc., in addition to paying interest, you must also pay attention to the related risks during the pledge period.

The upcoming listing of Hante has also made the "high-priced stock lottery" once again become the focus of the market. Whether it is cost-effective to pay interest on short-term borrowings in exchange for subscription opportunities ultimately depends on the actual winning rate, stock price performance after listing, and the investors' own capital costs and risk tolerance.

Grasp the economic pulse with one hand. Click here to subscribe to Free Finance Youtube Channel