Oi Wah Pawnshop’s IPO was small at just HK$98 million, but it attracted the attention of investors. The IPO was oversubscribed by 1,085 times and shares surged 34% on the first day of trading. As the broader markets fell yesterday, however, Oi Wah shares also plunged almost 7 percent. For 37 years the company has been in the pawn business with 12 pawn shops in the city. In 2009 they began to transform business with a break into mortgage lending as the property bubble was heating up. Oi Wah has gone from doing loans on gold and jewelry to mortgage lending using flats as collateral. According the company business has been good in this sector, and the funds raised through the IPO will go toward expanding its mortgage business, targeting households and small and medium-sized businesses. Despite higher interest rates than bank mortgage loans, clients are attracted to the services offered at Oi Wah because they can avoid the lengthy and complicated credit approval process at local banks.