6 Hong Kong share listings this week set to raise up to US$458 million amid lacklustre year for IPOs
- Wuhan YZY Biopharma and LC Logistics debuted on Monday with share prices in the lower end of their target ranges
- Tencent-backed car services platform Tuhu, artificial-intelligence company Beijing Fourth Paradigm among the listings set for later in the week
A biotech company and a provider of logistics services on Monday kicked off a string of six Hong Kong trading debuts this week that could raise a combined HK$3.58 billion (US$458 million), as the city’s performance as a venue for share listings continues to disappoint versus past years.
Wuhan YZY Biopharma priced its shares at HK$16, in the lower end of its target range, raising HK$172 million on Monday. Its shares rose as much as 5 per cent. Meanwhile, LC Logistics raised HK$149 million as its shares, priced at HK$5.13, closed at HK$5.10 after falling as much as 4.9 per cent.
IPOs in the city will drop 14 per cent in deal volume and 61 per cent in value in the first three quarters of the year, compared with the same period in 2022, according to an estimate by Deloitte. The consulting firm expects a total of 44 IPOs to garner an estimated HK$24.7 billion, versus 51 deals that raised HK$64 billion in the same period last year.
On Tuesday, Tencent-backed car services platform Tuhu is aiming to raise around HK$1.08 billion as it lists 814 million shares. The company set its share price at HK$28, also at the lower end of its target range, according to an exchange filing on Monday.
Bank of America Securities, Goldman Sachs, CICC and UBS are the joint sponsors of the deal. Five cornerstone investors – Zhejiang Leapmotor, Gotion High Tech, Image Frame Investment, Castrol Holdings International and Shanghai Zizhu High-tech Zone – have subscribed to 66 per cent of the stock, or 28 million shares.
