Winning a lottery with immediate cash of $39k—Yitai Industrial (7818) opens a public offering: what should investors pay attention to when drawing shares?

Yitai Industrial Co., Ltd. (7818), a water-purification contract manufacturer, will begin its public subscription tomorrow (5/6). Based on its offering price of $70 and the latest closing price of $109, winning one lot could yield up to $39k in potential profit, with a return rate exceeding 55%. What is a stock lottery draw, and how do you participate?

What does Yitai Industrial (7818) do?

Yitai Industrial (7818) is a well-known manufacturing company headquartered in Pingtung, Taiwan. The company was established in 1981. In its early years, it started with contract manufacturing of plastic products and ball valves, and later developed into a hidden champion in global water-purification equipment and outdoor vehicle-mounted gear.

In recent years, Yitai Industrial has successfully transformed from a traditional contract manufacturer (OEM/ODM) into a technology-driven solutions provider. Its core business mainly falls into the following three business segments:

Residential and commercial water-purification products (its core longtime business): This is the foundational business Yitai has developed for the longest time. They are among the top five water-purification product contract manufacturers globally, producing for internationally recognized water-purification brands and Fortune 500 companies.

Outdoor vehicle-mounted equipment and metal products: After acquiring YAKIMA, a well-known U.S. leader in outdoor vehicle-mounted equipment, it has successfully secured a spot as the world’s second-largest rack supplier.

Industrial water treatment: In addition to water for daily life, Yitai has also expanded into the facility-side water resource treatment for technology and manufacturing industries, integrating the concepts of circular economy and ESG that have gained attention in recent years.

With two seemingly unrelated but top-tier engines—“water purification” and “metal racks”—Yitai Industrial listed on the OTC board in February 2025 and received approval to transfer to the main board in 2026. In 2025, full-year revenue reached TWD 12.6 billion, making it one of the benchmark companies in Taiwan’s traditional industries that successfully transformed, completed cross-border acquisitions, and entered international markets.

What is a stock lottery draw? Win and profit $39k on the spot?

The official name of a stock lottery draw is “public subscription.” It is a mechanism for companies to issue new shares to the public to raise capital. When a company is conducting an initial listing/OTC (IPO) or a cash increase after listing/OTC, the law requires it to set aside a certain proportion of the shares for public subscription. Investors must apply through their securities firm’s trading platform and, on the specified debit date, ensure there is enough subscription funds and related fees in their settlement account. If the total number of subscribers exceeds the number of share lots available for allocation, the Taiwan Stock Exchange will conduct computer-randomized draws to ensure fairness and transparency in the allocation process.

Based on its offering price of $70 and the latest closing price of $109, winning one lot could yield up to $39k in potential profit, with a return rate exceeding 55%.

Spend $20 on lottery tickets? What are the risks of stock lottery draws?

The core motivation for most investors to participate is the potential price spread between the “offering price” and the “market price.” To attract market subscriptions, the lead underwriter typically offers the offering price with a discount relative to market value. However, participation also requires bearing the cost of having capital frozen. After the subscription deadline, on the debit date the full amount will be deducted in advance and frozen for several trading days until the refund date for unsuccessful applicants, when funds will be released.

In terms of actual operations, investors also need to consider implied transaction costs. Each time you participate in the subscription, you must pay a processing fee of TWD 20 and a TWD 50 mailing fee for the winning notification. If you do not win, the subscription funds and the TWD 50 postage will be returned—so the TWD 20 is a sunk cost.

Since Yitai Industrial (7818) only provides 3,160 shares for the public subscription, the winning rate is estimated to be under 1%. You must deposit $70,070 in advance into a securities account. Even after winning, you will have to wait until after the 5/18 share transfer date to sell the shares, during which there is some price risk. Also, because Yitai Industrial (7818) is transferring from the OTC board to a listed status, the reference price is based on the OTC price, which tends to have lower liquidity and more potential deviation. Whether the company can maintain the same high price during the listing process is a test. Before drawing, investors must carefully consider whether the price gap is sufficient.

The draw process is simple: between 5/6 and 5/8, before 2:00 PM, open your securities APP, tap the stock lottery draw option, and deposit $70,070. Results will be announced on 5/12.

This article, “Win $39k on the spot: Yitai Industrial (7818) public subscription—what should you pay attention to with stock lottery draws?” appeared earliest on Chain News ABMedia.