Hong Kong Defies Market Slump With Record Summer IPO Haul

Hong Kong Defies Market Slump With Record Summer IPO Haul

Foto: Fotolia

Hong Kong IPO bankers aren’t getting much of a break this summer, according to Bloomberg.

The city’s market for initial public offerings is in the middle of its biggest summer on record, despite a slumping benchmark stock index and some high-profile disappointments. Companies including Xiaomi and China Tower have completed $19.2 billion of first-time share sales since the beginning of June.

That volume easily surpasses the previous record set in 2010, when companies raised $13.4 billion in the three months through August, the data show. Firms pursued stock sales this year after Hong Kong Exchanges & Clearing approved the biggest change to its IPO rules in two decades, opening the door for tech companies with weighted voting rights as well as unprofitable biotech firms.

While deals are getting done, the Hang Seng Index is trading down about 16 percent from its January high, which has forced companies to adjust their fundraising expectations. The year’s two biggest IPOs, from China Tower and Xiaomi, priced at the low end of their marketed ranges.

The rest of the year looks like it’s going to be equally busy. Meituan Dianping, the Chinese restaurant review and delivery giant, plans to seek about $6 billion after filing in June for a planned Hong Kong listing, people with knowledge of the matter have said. It will be joined by several biotech firms including Innovent Biologics, which is developing treatments for cancer and other ailments, and contract drug researcher Viva Biotech.

More from category

Intel Stock Falls on Report of New Chip Security Vulnerability

Intel Stock Falls on Report of New Chip Security Vulnerability

15 Aug 2018 comment

Intel shares dipped after the company revealed another potential security flaw that could allow illicit access to data, according to Bloomberg.

Verizon Signs Apple and Google as Partners for 5G TV Service

Verizon Signs Apple and Google as Partners for 5G TV Service

15 Aug 2018 comment

Verizon announced deals making Apple and Google its first video providers for a 5G wireless service the company plans to launch in four cities later this year, according to Bloomberg.

Coinbase Still Signing Up 50,000 Users a Day

Coinbase Still Signing Up 50,000 Users a Day

15 Aug 2018 comment

Coinbase is signing up 50,000 new customers a day even amid a virtual-coin price slump, CEO Brian Armstrong said, according to Bloomberg.