HK set to take IPO crown but new listings falter, Latest Business News - The New Paper

HK set to take IPO crown but new listings falter

This article is more than 12 months old

HONG KONG: Hong Kong is on course to take the global initial public offering (IPO) crown this year for the most money raised in stock market flotations, narrowly ahead of rival New York, but its new listings have posted the worst performance among leading bourses, data shows.

The figures are a blow to Hong Kong - its hopes of a listings bonanza spurred by new tech-friendly rules have been dented by weak markets.

Some companies have cut the size of their offerings, while others have held back from floating in the hope of a better environment later.

Companies listing in Hong Kong have sold shares worth US$31.4 billion (S$43 billion) so far this year, the highest total in eight years, compared with US$30.2 billion on the New York Stock Exchange (NYSE), according to Dealogic data.

But only six of the biggest 20 IPOs in Hong Kong that have begun trading were above offer prices a month after debut, the data shows, compared with 16 on the NYSE and 10 on Nasdaq.

Two of Hong Kong's biggest deals, Xiaomi and Meituan Dianping, which raised US$9.7 billion between them, are down 19 per cent and 26 per cent respectively, since their floats in July and September.

Hong Kong's benchmark Hang Seng Index has fallen 13 per cent this year, while the Shanghai Composite index has dropped more than 20 per cent.

In the US, the S&P 500 is up 0.8 per cent. - REUTERS