There is good news in Hong Kong’s IPO market. The activity has attracted a slight pick-up with the first $1bn float. However, bankers analyzed that the selling side would be better if the sizable deals work in favor of the investors. Commonly, IPO reaches its peak in June as issuers rush to close deals before updating numbers. June this year is also the last IPO window before summer holidays. Four companies have started pre-marketing IPO as well.
These four companies are Cloudr, Xuan Wu Cloud, GFT International, and Sinohealth. Cloudr, the online healthcare platform, started IPO marketing for $100m. Xuan Wu Cloud, the software service provider, has started pre-marketing for an IPO for as much as $50m. GFT International on the other hand has started IPO pre-marketing for as much as $40m. Finally, the Sinohealth, healthcare data solutions provider also started IPO pre-marketing for as much as $50m.
This month, Tainqi Lithium, the lithium miner, has won approval from the Stock Exchange of Hong Kong for losing $1bn-$1.5bn. Medbanks Health Technology also won approval from the Stock Exchange of Hong Kong for its $500m listing. Meanwhile, Gogox, the logistics unicorn, also wrapped up a HK$671m IPO. If all these deals are going well, June would be the busiest month in Hong Kong’s IPO.
This is because, after the war in Ukraine at the end of February, many issuers tried to complete the deals despite global market disruptions. Meanwhile, only a few IPO activities have been seen in Hong Kong since the invasion. ECM bankers also argue that a lot of IPO candidates and selling side have been queuing for a long time. Some of them do not even want to upgrade their financials in the stock markets due to the negative news.