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Hong Kong’s IPO pipeline fills up as Ximalaya, Xintiandi seek to list, helping city catch up with New York in global fundraising race
- Nearly a dozen firms have filed paperwork in September to go public in Hong Kong later this year
- Regulatory crackdown in China this summer has slowed the pace of new listings
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Hong Kong’s pipeline for initial public offerings (IPOs) is starting to fill up as more companies emerged from the summer lull to file their listing plans, potentially helping the city catch up with New York in the global race for fundraising.
Ximalaya, China’s biggest podcasting platform backed by Tencent Holdings, and Xintiandi, the Shanghai commercial property assets of tycoon Vincent Lo Hong sui’s Shui On Land, both filed to list in Hong Kong.
They are among nearly a dozen firms who have filed paperwork to go public in the city since the beginning of September. China’s largest artificial intelligence company SenseTime Group and 58 Freight, the operator of Hong Kong’s GoGoX, filed in August. Top Glove, the world’s biggest rubber glove maker, is expected to renew its plan to list in Hong Kong.
Heightened regulatory scrutiny in China and the United States have caused a number of companies to take a “wait and see” approach to listings this year, but that could play in Hong Kong’s favour, said Edward Au, the co-leader of Deloitte’s national public offering group.
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The tighter listing requirements and regulatory measures “coming together may possibly result in a busy last quarter of the year for capital raising,” even if the pace of secondary listings fail to live up to expectations in the second half due to regulatory crackdowns and declining valuations, Au said.
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