Falling IPO Star: Hong Kong Tipped to Lose Top-Three Ranking Again

Hong Kong is losing some of its luster as an IPO hub, hit by market worries about soaring inflation, rising interest rates, tumbling stock prices and China’s zero-Covid policy. Some analysts say the exchange has little chance of landing a top-three place for global IPO fundraising this year Key Takeaways: As of the third quarter of this year, the world’s top three IPO capital raisers were the Shanghai Stock Exchange, the Shenzhen Stock Exchange and the Korea Exchange, with Hong Kong lagging in fourth place Some analysts believe that a…

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Greatpower Nickel Restarts IPO Engine after Earnings Setback

The producer of battery materials used in electric vehicles has filed for a second time to list on the Hong Kong Stock Exchange, fortified by an LG supply deal Key Takeaways: Greatpower Nickel and Cobalt, hit by Covid disruptions and falling prices, swung to a loss in the first half of the year after writing off a large sum for cobalt products inventory But the company benefits from a six-year supply agreement with South Korean lithium battery powerhouse LG Energy Solution, assuring a future revenue stream By Fai Pui Companies…

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AIM Vaccine Shrinks Its IPO But Gives Chairman a Mega Paycheck

China’s second-largest maker of non-Covid vaccines has finally crossed the IPO finish line and will list its shares next Thursday Key Takeaways: AIM Vaccine is finally landing on the Hong Kong Stock Exchange at its third attempt, but has only issued 0.8% of its total share capital, raising a net HK$70 million The company issued equity incentives worth a whopping 900 million yuan to its chairman before going public, and swung from profit to loss last year By Molly Wen The biopharma sector has been one of the biggest casualties…

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TikTok-ing Off High Valuation, ByteDance Offers to Buy Out Early Investors

The TikTok parent will buy back up to $3 billion of its own shares at a valuation of about $300 billion, even as China’s second largest internet company also faces major geopolitical headwinds Key Takeaways: Data security concerns have stalled an overseas IPO plan by TikTok parent ByteDance, prompting it to offer to buy out shares from some early investors The company is valued higher than social media giants Alphabet, Meta and Tencent on a price-to-sales (P/S) basis By Ken Lo What’s the best way to quiet noisy shareholders clamoring…

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IT provider Edianyun Seeks IPO Cash, with Finances Under a Cloud

China’s largest provider of integrated business IT solutions, Edianyun, recently re-filed to list on the Hong Kong Stock Exchange, but a ballooning first-half loss of 625 million yuan is a major concern Key Takeaways: The pre-listing finances at Edianyun have taken a sharp turn for the worse, as the company’s net loss in the first half of this year alone is almost equal to the total combined losses of the previous three years The company relies on the leasing of computer and office equipment and is under strong capital pressure…

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Lepu ScienTech Revives IPO After Policy Move Brightens Its Prospects

China’s leading supplier of congenital heart disease devices made its third filing earlier this month for a Hong Kong IPO Key Takeaways: After taking its Lepu Biopharma unit public in February, Lepu Medical is pressing ahead with a third attempt at listing is Lepu ScienTech unit in Hong Kong China’s healthcare regulator has said it won’t include innovative medical equipment in its bulk purchase programs, which should help Lepu ScienTech’s profitability Emily Chan Hong Kong’s stock market may be slumping, and the U.S.-China tech war may be spilling over into…

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Lifted by Southeast Asia Growth, Insurer FWD Seeks IPO Safe Landing

Hong Kong tycoon Richard Li’s Asia-focused insurance company, FWD Group, has filed again for an IPO that reportedly aims to raise $1 billion Key Takeaways: FWD has switched its focus from opportunities in China to the growth potential in Southeast Asia as its main IPO selling point for investors The company’s listing was delayed in May this year due to bumpy market conditions, and it is still beset by uncertainty, with sluggish Hong Kong stocks and a likely swing from profit to loss this year By Ken Lo FWD Group…

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Lacking Revenue, Jenscare Scientific Hopes IPO Investors Take Heart in Its Potential

The maker of devices to treat structural heart disease hopes to have its first product approved in the second half of next year as it prepares to list in Hong Kong Key Takeaways: Jenscare Scientific is preparing to raise a reported $30 million in a Hong Kong IPO, even though it doesn’t expect to earn any product-related revenue until the latter half of next year at earliest The company’s valuation reached $1.36 billion last year, but could possibly dive by the time it debuts due to weak overall market sentiment…

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Loss-hit Fenbi Tech Seeks IPO Cash After Education Sector Upheaval

The slimmed-down provider of tutoring for civil service exams and vocational training has filed to list on the Hong Kong Stock Exchange for the second time Key Takeaways: Fenbi Technology has posted losses of more than 2.5 billion yuan in the past two years after shifting from online into offline training The company laid off more than 9,400 employees and cut staff salaries to ease financial pressure By Fai Pui A year after a tutoring crackdown shattered China’s prosperous education sector, the still viable pieces of the business are seeking…

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Hong Kong SPAC Market Wilts as Global Fever Ebbs

Global investors are becoming less keen on special purpose acquisition companies, clouding prospects for Hong Kong’s own SPAC market launched at the start of this year Key Takeaways: Only three Hong Kong SPACs have listed since the city launched a local program early this year, and all now trade below their listing prices U.S. SPACs have raised $12.5 billion so far this year, less than 10% of what they raised in 2021, as the global SPAC market cools By Ken Lo Blame it on the market. Or perhaps special purpose…

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