Hong Kong Firms Currently Raising Funds at Fastest Pace All Year
Hong Kong Firms Currently Raising Funds at Fastest Pace All Year
(Bloomberg) -- Hong Kong-listed firms are on a fundraising spree.
Seven companies have raised a total of $1.76 billion this week alone, the most both in terms of number of deals and amount since the start of the year, according to data compiled by Bloomberg.
The latest to tap the market was property developer China Vanke Co. which raised $1.02 billion overnight, almost topping fellow developer Sunac China Holdings Ltd.’s $1.03 billion share sale in January, so far the largest deal of the year.
Firms across Asia have been selling shares to shore up balance sheets as they prepare to weather an economy battered by the coronavirus pandemic. Sales of new shares in Hong Kong have so far trailed those in other markets such as Australia and India, where regulators moved to relax rules around capital-raising. Additional offerings in the financial hub had so far mostly consisted of shareholders monetizing their stakes as the market recovered from a March slump.
Activity has picked up in the last two weeks. Geely Automobile Holdings Ltd. raised $867 million in a placement last week -- the largest deal in Hong Kong since a fundraising spree in January during a market rally prior to the coronavirus epidemic. Property management firms Ever Sunshine Lifestyle Services Group and Greentown Service Group Co respectively sold $204 million and $351 million in new shares this week, adding to deals by China Meidong Auto Holdings and Minsheng Education Group.
UPCOMING LISTINGS:
- NetEase Inc.
- Hong Kong exchange
- Size up to $2.8b
- Pricing June 5, listing June 11
- CICC, Credit Suisse, JPMorgan
- JD.com Inc.
- Hong Kong exchange
- Size about $2b
- Listing expected June 18
- Bank of America, CLSA, UBS
- Dada Nexus Ltd.
- Nasdaq exchange
- Size up to $280m
- Pricing June 4
- Goldman Sachs, Bank of America, Jefferies
- Legend Biotech Corp.
- Nasdaq exchange
- Size up to $368.5m
- Pricing June 4
- Morgan Stanley, JPMorgan, Jefferies
- Burning Rock Biotech Ltd.
- Nasdaq
- Size $100m
- Filed May 22
- Morgan Stanley, BofA, Cowen & Co., CMBI, Tiger Brokers
More ECM situations we are following:
- NetEase Inc. is planning to stop taking investor orders in Europe and the U.S. for its Hong Kong listing of as much as $2.8 billion ahead of schedule, according to a person familiar with the matter
- China Bohai Bank will seek approval next week for a $2b IPO in Hong Kong, IFR reported, citing unidentified people close to the deal
- Ever Sunshine Lifestyle Services Group’s offering 134 million shares priced at HK$11.78 each, according to terms for the deal obtained by Bloomberg News
See also:
- Asia ECM Weekly Agenda
- IPO data
- U.S. ECM Watch
- EU ECM Watch
- To receive the ECM Watch in your inbox daily, click the “subscribe” button at the top of this article.
©2020 Bloomberg L.P.