Three of Four Hong Kong IPOs Open Lower in Busiest Week Since July

Four companies began trading in Hong Kong on Tuesday after raising a combined HK$14.4 billion (US$1.83 billion), but three opened below their offer prices in a weak start to the city’s busiest listing week since July.

Debuts add pressure to IPO market

The listings came after a mixed third quarter for Hong Kong’s IPO market, when 12 of 26 new stocks debuted below their offer prices.

The weak openings added pressure to what the source described as an already sluggish month for initial public offerings in the city.

Shenzhen Kinwong Electronic was among the closely watched debuts after pricing its shares at the top of the marketed range at HK$69.88.

The company raised HK$5.1 billion before its Hong Kong debut.

Its shares plunged as much as 8.1 per cent at the start, before recovering those losses and rising nearly 11 per cent above the offer price.

Volatility follows mixed quarter

The volatile debuts followed a quarter in which Hong Kong listings produced uneven first-day performances.

As of September 22, 26 companies had listed in the city during the quarter, according to the city’s bourse operator.

Those listings included blockbuster IPOs from Zhongji Innolight, Shein and Luxshare, according to the same source.

The latest debuts therefore test Hong Kong’s IPO revival at a moment when recent listings have shown both large fundraisings and weak opening trades.

Source: South China Morning Post