Hong Kong Heads Into Busiest Week for IPOs in Months

(Bloomberg) -- Hong Kong is heading into the busiest week for initial public offerings in four months with six companies launching listings worth $1.7 billion combined on Monday.

That makes this the busiest week since the one beginning February 24, when 12 companies announced IPOs, data compiled by Bloomberg show. The pick-up in activity comes after the second listings in the city of Chinese tech giants JD.com Inc. and NetEase Inc. earlier this month raised about $7 billion and galvanized the IPO market back into action.

E-cigarette device maker Smoore International Holdings Ltd. started taking orders for an IPO that could raise as much as $919 million, making it the largest listing in the financial hub after JD and NetEase. Other companies book building this week include the property management arm of Zhenro Properties Group, the project management unit of Greentown China, poultry meat producer Shandong Fengxiang Co., Ocumension Therapeutics and Adtiger Corp Ltd.

Hong Kong has had a slow start to the year in terms of IPOs as the coronavirus-induced market slump earlier this year prompted many issuers to hold off their floats. But the successful listings of JD and NetEase opened up the market again and prospective issuers are no longer limited to mostly biotech companies, which had proved almost immune to the earlier market volatility.

In a sign that the health-care fervor is not dying down, surgical instruments maker Kangji Medical Holdings Ltd. jumped 94% on its Monday debut, the best opening performance for a health-care IPO in Hong Kong this year, according to data compiled by Bloomberg.

READ MORE: Tigermed Files for H.K. Listing as Health Care Shines

UPCOMING LISTINGS:

• Shenzhen Hepalink Pharmaceutical Group
  • Hong Kong exchange
  • Size up to $585m
  • Books close June 30, trading July 8
  • Goldman Sachs, Morgan Stanley

• Redsun Services Group

  • Hong Kong exchange
  • Size up to $55.5m
  • Books close June 30, trading July 7
  • ABC International
• Immunotech Biopharm
  • Hong Kong exchange
  • Size up to $142m
  • Pricing July 3, listing July 10
  • CCB International, Guosen Securities
• Smoore International Holdings
  • Hong Kong exchange
  • Size up to $919m
  • Pricing July 3, trading July 10
  • CLSA
• Zhenro Services Group
  • Hong Kong exchange
  • Size up to $152m
  • Pricing July 3, trading July 10
  • CCB International, BNP Paribas
• Greentown Management
  • Hong Kong exchange
  • Pre-marketing from June 19
  • Credit Suisse, Deutsche Bank
• Ocumension Therapeutics
  • Hong Kong exchange
  • Size up to $185m
  • Pricing July 3, trading July 10
  • Morgan Stanley, Goldman Sachs

• Shandong Fengxiang

  • Hong Kong exchange
  • Size up to $234m
  • Pricing July 7, trading July 16
• China Bohai Bank
  • Hong Kong exchange
  • Size about $2b
  • Pre-marketing from June 24
  • CCBI, Haitong, ABC International, CLSA
• DoubleDown Interactive
  • Nasdaq
  • Size up to $209m
  • Pricing June 30
  • JPMorgan, Bank of America
• Sri Trang Gloves
  • Thailand stock exchange
  • Size $481m
  • Subscription period from June 23-June 25
  • Finansa
• SK Biopharmaceuticals
  • Korea stock exchange
  • Size $793m
  • Listing around July 2
  • NH Investment & Securities, Citi, Morgan Stanley

More ECM situations we are following:

• 21Vianet Group Inc., a data center operator backed by Blackstone Group Inc., is considering a second listing in Hong Kong, people familiar with the matter said, joining a growing number of U.S.-listed Chinese firms in looking to sell shares in the city
• E-cigarette device maker Smoore International Holdings Ltd. offers 574.4m shares at HK$9.60-HK$12.40 apiece in its Hong Kong initial public offering, according to a statement to the Hong Kong stock exchange
• Poultry meat producer Shandong Fengxiang Co. offers 355 million H shares at HK$3.33-HK$5.10 apiece in its Hong Kong initial public offering, according to the terms for the deal obtained by Bloomberg News
• Zhenro Services Group Ltd., the property management arm of developer Zhenro Properties Group Ltd., is offering 250 million shares at HK$3.60-HK$4.70 each, according to its prospectus.
• Greentown Management Holdings, the project management arm of developer Greentown China, is offering 477.6m shares at HK$2.20-HK$3 apiece, according to the terms of the offering obtained by Bloomberg
• Ocumension Therapeutics is offering 105.9m shares at HK$13.16-HK$14.66 each, according to terms of the deal obtained by Bloomberg
• Luckin Coffee Inc.’s board will require Chairman Charles Zhengyao Lu to resign, adding to the fallout from an accounting scandal that has battered the onetime market darling.

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.