Hong Kong IPOs to net record $460b in 2021

Finance | Avery Chen and Reuters 5 Jan 2021

Hong Kong's initial public offering market is expected to raise up to HK$460 billion in 2021, hitting a historical high, according to PwC, with China's top ride-hailing firm Didi Chuxing and JD.com's (9618) JD Logistics lining up for public sales in the city.

PwC said Hong Kong could regain the top position for most funds raised among global IPO fundraising markets this year.

It predicts 170 IPOs in 2021, and the new economy and the US-listed Chinese enterprises will remain as the main drivers for listing activities.

Benson Wong, PwC Hong Kong's entrepreneur group leader, expects 10 to 15 US-listed companies will launch secondary listings in Hong Kong, raising HK$10 billion to HK$15 billion on average.

Meanwhile, JD Logistics has hired Goldman Sachs and Bank of America for its Hong Kong IPO, which could raise around US$4 billion (HK$31.2 billion), IFR reported.

The logistics unit of Chinese e-commerce giant JD.com is planning to start trading in the second or third quarter this year, with a targeted valuation of US$40 billion, the report said.

Didi Chuxing is also planning to sell shares in Hong Kong this year, targeting a valuation of around US$60 billion to US$80 billion, mainland media reported.

Didi is backed by technology investment giants SoftBank, Alibaba (9988), and Tencent (0700) and Retuers previously reported that the IPO coudl be launched within the first half of 2021.

Ten companies are currently conducting IPOs in Hong Kong. The most popular one is Yidu Tech, a software company providing health care solution services, which has attracted at least HK$161 billion in retail orders through margin financing as of last night, meaning its retail portion was at least 392 times oversubscribed.

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