Guangzhou Goaland Energy Conservation Tech Co, a maker of water-cooling systems for power stations, surged by the 44 percent daily limit in its trading debut on Tuesday after luring bids for 4,300 times the number of shares on offer.

The company raised 258.7 million yuan, the amount it sought, after receiving orders from 7.5 million investors. Upcoming IPOs include Eastern Pioneer Driving School Co, Southern Publishing & Media Co and TopScore Fashion Shoes Co.

The boom in IPO orders comes before an anticipated shift to a more market-based registration system later this year. The new regime would leave the questions of IPO supply and timing to companies and the market, rather than the China Securities Regulatory Commission, and give firms more power to determine pricing.

The perception that IPOs are riskless has encouraged some investors to use borrowed money to amplify their wagers.