Markets prep for a busy week of listings

Bloomberg and staff reporter

Asia's stock markets are gearing up for their busiest week of listings in more than two years with 20 companies raising as much as US$8.3 billion (HK$64.5 billion) including China Resources Beverage locking up HK$130 billion margin financing.

The US$8.3 billion is the biggest weekly volume since April 2022, according to data compiled by Bloomberg. The heavy supply includes deals from China, India and Japan, underscoring the broad revival in share sales across the region.

"There is a level of animal spirits returning to the Asia market," said Matthew Emsley, a partner at Herbert Smith Freehills in Hong Kong who works on initial public offerings, using a popular term for changes in market behavior that are often driven by emotions. "There's an increased level of activity and urgency to take advantage of that positivity."

The performance of the newly listed shares will be keenly watched by bankers planning to bring a spree of equity offerings in Asia over the next few weeks, as companies and major shareholders attempt to close deals before the election in the US on November 5.

The deals will also offer insight into investor demand in the longer term following years of weakness due to lackluster markets. Bottled water maker China Resources Beverage and autonomous-driving technology firm Horizon Robotics are set to debut in Hong Kong on Wednesday and Thursday, respectively, raising more than US$1.3 billion between them.

In other news, the Securities and Futures Commission and Hong Kong Exchanges and Clearing (0388) jointly announced simplified listing rules in Hong Kong.

Only one round of inquiry on the listing application and a regulatory assessment within 30 business days are set for an A-share company that has an estimated market capitalization of at least HK$10 billion and has complied with market regulations for the past two financial years.