Retail investors pump record $1.84tn into IPO

Staff reporter and agencies

China's fresh fruit drink giant Mixue Group's retail tranche of its Hong Kong initial public offering was oversubscribed by nearly 5,319 times.

It ultimately raked in nearly HK$1.84 trillion in margin loans from retail investors in borrowings through brokerages, since it kicked off book-building on February 21

Mixue's margin loans exceeded the previous margin financing record of HK$1.3 trillion set by Ant Group for its IPO suspended by China in 2020 when Chinese regulators recommended tighter regulations for online micro-lending companies.

Mixue is offering shares at HK$202.50 apiece, with a minimum investment of HK$20,454.22 per board lot of 100 shares.

In other news, a lack of recent multibillion dollar deals has made the race for a role on CATL's upcoming Hong Kong listing even more competitive, despite low fees for bankers and a US blacklisting hanging over the world's biggest battery maker.

Top banking brass such as HSBC (0005) chairman Mark Tucker pitched directly to the Chinese company, full name Contemporary Amperex Technology, while others shelved deals they were working on to focus instead on landing CATL, which is expected to raise more than US$5 billion (HK$39 billion) in Hong Kong.

"When you've had a prolonged deal drought, it's critical to be on the first big ticket," said Craig Coben, a veteran investment banker who was one of Bank of America's most senior capital markets executives until he retired in 2022. "This would be a must-win for any bank."

Meanwhile, Chinese electric truckmaker Zhizi Automobile Technology is considering an IPO in Hong Kong that could raise about US$200 million, according to people familiar with the matter.

Zhizi is in talks with prospective advisers to help prepare for a potential share sale, the people said.

Deliberations are ongoing and may not result in an IPO, they added.