SF Express gets go ahead for HK share sale

There have been more capital raising activities, including Chinese express delivery giant SF Holding obtaining Chinese regulators' approval to have a second listing in Hong Kong, as well as a US$12 billion (HK$93.6 billion) worth of share sale by Saudi state oil giant Aramco that kicked off yesterday.

The Shenzhen-listed SF Holding, also known as SF Express, said it has been given a green light by China's securities watchdog to go public in Hong Kong by issuing no more than 625 million shares.

Meanwhile, Chinese pharmaceutical technology start-up Quantum Pharm will open its retail books tomorrow.

It is expected to be the first specialist technology firm to go public in Hong Kong under Chapter 18C, new rules for pre-commercial tech firms.

This came as Aramco's US$12 billion share sale sold out shortly after the deal opened yesterday, in a boon to the government that's seeking funds to help pay for a massive economic transformation plan. The government had demand for all shares on offer in a few hours after books opened, according to terms of the deal seen by Bloomberg News.

Books were covered across the price range of 26.70 riyals (HK$55.66) to 29 riyals. While it was not immediately clear exactly how much of the demand came from overseas, the order book reflected a mix of local and foreign investors, three people familiar with the matter said.

The extent of foreign participation will be closely watched as an indicator of interest in Saudi assets.

During Aramco's 2019 initial public offering, overseas investors had largely balked at valuation expectations and left the government reliant on local buyers.