IPO extravaganza as 15 firms jostle for $34b

Business | Avery Chen 30 Jun 2020

Seven companies launched Hong Kong initial public offerings yesterday while a further eight test the waters today. Together, the 15 firms aim to raise a total of HK$34 billion, making it the busiest week for the local market so far this year.

Two mainland companies made decent market debuts as investor appetite for health-care-related companies remains huge. Kangji Medical (9997), a maker of minimally invasive surgical instruments, saw its share price jump 98.8 percent to HK$27.6 with a market turnover of HK$3.3 billion while Hygeia Healthcare (6078), a radiotherapy equipment maker, ended 40.5 percent higher than its offer price at HK$26, with HK$1.9 billion worth of shares traded.

Among the seven companies launching their public offerings yesterday, Ocumension Therapeutics, a mainland ophthalmology firm, was most popular among retail investors.

The Shanghai-based firm attracted at least HK$56 billion in retail orders through margin financing within a day for its up to HK$1.55 billion deal, equivalent to an oversubscription of more than 360 times.

And investors placed orders worth more than HK$3.1 billion for the IPO of unprofitable biotech firm Immunotech Biopharm, which is seeking to raise around HK$1.1 billion.

Other companies kicking off IPOs yesterday included E-cigarette device maker Smoore International, which aims to raise up to HK$7.12 billion and online advertising firm Adtiger Corporations which seeks to raise HK$150 million. In the property sector, Ganglong China Property is planning to raise up to HK$1.64 billion, Greentown China (3900) is spinning off its project management business Greentown Management to raise HK$1.43 billion, while Zhenro Properties' (6158) property manage arm Zhenro Services intends to raise HK$1.18 billion through its IPO.

Today, at least eight companies launch public offerings, led by China Bohai Bank, which is aiming to raise as much as HK$14.34 billion and expected to be the largest listing after JD.com (9618) and NetEase (9999).

Other companies consist of Tencent (0700) - backed game developer Archosaur Games, poultry meat producer Shandong Fengxiang, production group Cathay Media, after-school education provider Dashan Education, game publisher Sino-Entertainment Technology, local contractor Superland Group and United Strength Power, a vehicle natural gas refuelling station operator.

There are more companies are lining up for Hong Kong IPOs. Chinese liquid detergent maker Blue Moon has filed IPO application for the Hong Kong stock exchange. It's reportedly aiming to raise up to US$1 billion (HK$7.8 billion). Dongguan Rural Commercial Bank is weighing a Hong Kong IPO that could raise as much as US$1 billion, according to Reuters IFR.

And Nasdaq-listed 21Vianet Group, which provides carrier-neutral internet data center services in China, is considering a second listing in Hong Kong.

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