(Bloomberg) -- Shares of Hygon Information Technology Co., a maker and distributor of computer components, surged in their Shanghai debut, making them this year’s second-best opening performance among large listings in China.

The stock closed 67% higher at 60.10 yuan after soaring as much as 105% shortly after open. Hygon’s offering raised 10.8 billion yuan ($1.6 billion) following the sale of 300 million shares at 36 yuan each. It’s the largest debut for the Nasdaq-like Star Board in 2022.

The Beijing-based company executed this year’s third-largest listing in the Asian country, where big offerings are flourishing despite a slump in traditional IPO venues. Mainland China IPOs mostly target local investors as capital controls make it harder for foreigners to participate, and they tend to pop when trading begins.

The stock will trade with no price limit in the first five sessions. The stock posted the second-best first day pop among Chinese listings larger than $1 billion this year. 

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About 80% of debuts on mainland China bourses of offerings that raised at least $500 million ended their first session in positive territory, data compiled by Bloomberg show.  

Hygon’s share sale counted on strong demand from individuals and funds, with tranches reserved for retail investors oversubscribed by more than 2,500 times. 

The issue price translates to a 315.2 times price-to-earnings ratio as of the end of 2021, according to a company filing. That compares with an industry average of 27.7 times. 

In June 2019, the US Department of Commerce included Hygon on a list that requires US companies to seek government approval before selling goods or services to such entities, according to the prospectus of the offering. 

Proceeds will be used for research and development and a technology development reserve fund, among other things, according to a statement to Shanghai’s exchange. 

CITIC Securities Co. is the sponsor in Hygon’s IPO.

(Updates with closing price)

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