Hong Kong IPOs: Cainiao, Midea, JD Industrials, SF Holding and Movoi hotly anticipated by the market
- More than 90 companies have filed listing applications with the Hong Kong stock exchange
- Some 65 IPOs are set to raise about HK$45.8 billion (US$5.9 billion) billion) this year, the least in two decades, according to Deloitte
There are more than 90 initial public offering (IPO) applications in the pipeline in Hong Kong, but the city needs more than a few blockbusters to hit the market, if there is going to be any improvement in 2024.
The city’s new IPO market this year has been one of the bleakest in two decades. A total of 42 companies raised US$3.13 billion on the main board of the Hong Kong stock exchange in the first nine months, according to financial data provider Refinitiv.
The fourth quarter has not been much different either. The IPO tally is set to shrink by more than a fifth this year, with some 65 IPOs set to raise about HK$45.8 billion, according to a report by Deloitte. Last year, 84 new listings raised HK$99.6 billion.
“The market needs more good news,” said Gary Ng, a senior economist for Asia-Pacific at Natixis. “Any successful IPOs with reasonable valuation will serve as an anchor to stabilise sentiment.”
If these deals fail, investors will continue to perceive Hong Kong as a risky market, he added.
