Hong Kong IPO demand diverges

Four companies set to begin trading on the Hong Kong exchange on December 22 closed their retail books, with demand varying widely across offerings.

State-owned cultural tourism operator Impression Dahongpao has seen the strongest retail interest among them, with margin financing of about HK$37.8 billion, or roughly 2,556 times oversubscribed of its retail tranche. The company plans to offer 36.1 million shares at HK$3.47 to HK$4.10 each, aiming to raise up to HK$150 million.

Biopharmaceutical firm B&K Corporation has also attracted heavy demand, with margin loans of about HK$53.6 billion, representing about 595 times oversubscription. The company is offering 17.65 million shares at HK$38.20 to HK$51 apiece to raise as much as HK$900 million.

BenQ BM Holding Cayman, which operates private hospitals in the Chinese mainland, has drawn around HK$368 million, or 4.7 times oversubscription. It plans to issue 67 million shares at HK$9.34 to HK$11.68, seeking to raise up to HK$782 million.

Nanhua Futures has attracted about HK$229 million in margin financing, equivalent to 1.33 times retail demand. The company is offering 110 million shares at HK$12 to HK$16 each, targeting proceeds of up to HK$1.72 billion.

Meanwhile, three other companies, expected to list on December 23, will end their retail book buildings on Thursday.

QingSong Health has attracted about HK$2.2 billion in margin financing, making its retail tranche around 36 times oversubscribed. Artificial intelligence firm Nuobikan Artificial Intelligence Technology (Chengdu) has drawn about HK$730 million, or roughly 18 times demand. Biotechnology company Hanx Biopharmaceuticals (Wuhan) has recorded about HK$12.4 billion in margin loans, translating into around 212 times oversubscription.