Firms line up for IPOs despite turmoil

Business | Avery Chen 12 Nov 2019

Two companies start trading on the mainboard today but their shares fell in the gray market last night.

Shares of SinoMab BioScience (3681) slid 0.26 percent to HK$7.58 in the Bright Smart gray market. The Hong Kong-based biopharmaceutical company raised HK$1.29 billion after pricing its initial public offering at HK$7.6 - the bottom of the indicative price range of HK$7.6 to HK$9.6. Its retail portion was oversubscribed by 11.87 times and the institutional portion was covered 1.38 times.

Meanwhile, shares of Ruicheng (China) Media (1640) fell 7.2 percent to HK$1.16 in the gray market.

The Beijing-based advertising firm raised HK$78.8 million after pricing its public float at HK$1.25 - the lower end of its targeted price range. The retail tranche of the deal was oversubscribed by 18.47 times.

Ten stocks are set to debut in Hong Kong this week with Chinese e-commerce titan Alibaba Group reportedly launching its IPO as soon as Friday.

Hebei-based property developer China Tianbao Group Development (1427), outperformed the Hang Seng Index on its market debut yesterday, whose shares closed at HK$2.57 - 2.8 percent higher than its IPO price - with a market turnover of HK$60.1 million.

The Hang Seng Index lost 2.62 percent to 26,926 points yesterday - the biggest single-day drop in more than three months, due to rising concerns about protests in Hong Kong.

However, the primary market seems less affected by political chaos, with more companies going ahead with their IPOs. Chinese biotechnology firm Venus Medtech (Huangzhou) and Shanghai-based XD Inc kicked off pre-marketing for their Hong Kong IPOs.

Venus Medtech, a developer of heart valve replacements backed by Goldman Sachs, is aiming to raise between US$300 million (HK$2.34 billion) and US$500 million, Bloomberg reported earlier.

Separately, China Feihe, the country's largest infant milk producer, was oversubscribed by four times on its international placing tranche.

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