Win the draw and get paid now 680k? Semiconductor equipment maker Innovative Service (7828) opens for public subscription—what should you pay attention to when it comes to stock lottery drawings?

Innovative Service (7828), as a benchmark company in Taiwan’s semiconductor equipment market, has recently drawn significant attention from the market due to its upcoming capital increase application after moving from the over-the-counter (OTC) market to the listed over-the-counter board. If we estimate based on its underwriting price of 628 yuan and the latest closing price of 1,310 yuan, being allocated one share could yield potential profit as high as 682k yuan, with a return rate exceeding 108%, making it this week’s most price-gap-driven and most standout stock lottery target.

Innovative Service (7828), a semiconductor automation equipment maker

Innovative Service (7828) has recently drawn significant attention from the market as it is about to move from the OTC market to the listed over-the-counter board. The company focuses on the R&D and manufacturing of automation equipment related to advanced semiconductor packaging and probe cards (Probe Card). As global demand for artificial intelligence and high-performance computing chips rises, it has driven demand for equipment used in advanced packaging processes. With its high gross margin and strong revenue growth performance, Innovative Service has become a focal point for capital market attention.

What is a stock lottery? Win and make 680k on the spot?

The official name of a stock lottery is “public offering.” It is a mechanism in which companies raise capital by issuing new shares to the public. When a company conducts its initial public offering (IPO) listing on the board or a cash capital increase after listing on the board, regulations require that a certain proportion of shares be set aside for public subscription. Investors must submit applications through their securities firms’ trading platforms and, on the specified debit date, ensure that their settlement account has sufficient subscription funds and related fees. If the total number of people subscribing exceeds the number of shares available for allocation, the Taiwan Stock Exchange will use computer-generated random drawings to ensure that the allocation process is fair and transparent.

If we estimate based on its underwriting price of 628 yuan and the latest closing price of 1,310 yuan, being allocated one share could yield potential profit as high as 682k yuan, with a return rate exceeding 108%, making it this week’s most price-gap-driven and most standout stock lottery target.

Spend 20 yuan to buy a lottery ticket? What risks come with stock lotteries?

For most investors, the core motivation for participating in lotteries lies in the potential spread between the “underwriting price” and the “market price.” To attract subscriptions, lead underwriters typically offer a certain discount to the underwriting price. However, participating in the subscription requires facing the cost of having capital frozen. On the debit date after the subscription deadline, the full amount of funds will be deducted in advance and frozen for several trading days until the refund date for non-allocated applicants, when funds are unlocked.

In terms of real-world execution, investors also need to consider the implied trading costs. Each time you participate in the subscription, you must pay a processing fee of 20 yuan New Taiwan Dollars and a fee of 50 yuan for mailing the lottery allocation notification; if you are not allocated shares, your funds are refunded along with 50 yuan postal charges. In other words, the 20 yuan is a sunk cost.

Since Innovative Service (7828) only provides 697 shares for this public offering, the expected allocation rate is less than 1%. You need to deposit 628,070 yuan in advance into a securities account. Even after being allocated shares, you also have to wait until after the 4/22 share-delivery date to sell the stock, meaning there is some price risk in the meantime. Moreover, because Innovative Service is moving from the OTC market to the listed over-the-counter board, its reference price is based on an OTC price that typically has lower liquidity and can deviate easily. Whether it can maintain the same high price once it is on the board is a question that remains to be tested. Before participating in the lottery, investors must be sure to consider whether the price spread is sufficient.

The lottery process is very simple: as long as you enter your securities app before 2:00 p.m. from 4/10 to 4/14, tap the stock lottery option, and deposit the 628,070 yuan fee. The results will be announced on 4/16.

Does this article win 680k on the spot? Innovative Service (7828), a semiconductor equipment maker, public offering—what should you pay attention to in a stock lottery? First appeared on Lian News ABMedia.