At the beginning of 2024, the Hong Kong stock IPO began with a “new tea drink scuffle”. On the evening of January 2, Michelle Ice City submitted a prospectus to the Hong Kong Stock Exchange, and Gu Ming also joined hands to submit the forms on the same day.
Earlier, Ou Guansheng, CEO of the Hong Kong Stock Exchange, said that the Hong Kong Stock Exchange is processing the IPO applications of nearly 100 companies. The new shares that have submitted listing applications include Cainiao Smart Logistics and SF Holdings; the technology industry includes Google's holdings, the first Black Sesame Intelligence to be listed under the 18C rule; and companies such as Brain Action Aurora and Jingtai Technology, which combine artificial intelligence technology with medical care, are also actively seeking listing.
According to PricewaterhouseCoopers and Deloitte, Hong Kong will have more than 80 IPOs listed in 2024. It is expected to raise 100 billion dollars, and it is expected to re-enter the top three global financing markets.
Hong Kong stock IPOs have shown signs of recovery in 2023. According to Deloitte's data, a total of 65 IPOs were listed in 23, raising about HK$45.8 billion. The overall first-day average return on IPOs rose to 8.07%, and the cumulative annual closing rate rose to 52%, far higher than 14% in 2022. At the same time, due to the narrowing of the room for upward premiums, the performance of IPOs on the first day was more rational, and there are also many companies that have had a more stable trend for several months after listing.
Among the IPOs listed in '23, “Jay Chou” concept stocks$STARPLUS LEGEND (06683.HK)$, the year-round closing increase was 77%;$YH ENT (02306.HK)$On the day of listing, it rose by more than 47%, and the return per lot exceeded HK$5,800, ranking first in the first-day return list; the consumer healthcare industry's$BEAUTYFARM MED (02373.HK)$Undercover trading is an exalted price, rising more than 55%, earning HK$5,390 per lot. It is the most profitable new stock in undermarket trading; and a cross-border marketing service provider$POWERWIN TECH (02405.HK)$The cumulative increase of 650% during the year was only 20% on the first day, making it a “lost jewel” among new stocks during the year.
Judging from the subscription situation, the overall proportion of oversubscribed projects is the same as in 2022, with “playful gaming” operators$ZX INC (09890.HK)$It topped the list with an oversubscription ratio of 104 times, and closed up 232% for the whole year; others attracted market attention$WUXI XDC (02268.HK)$As the fourth IPO of the Pharmaceutical Group, it became the most popular new stock with over 30,000 subscribers. It opened with a sharp increase of 30% and a market capitalization of over 30 billion dollars, making it the largest pharmaceutical IPO for Hong Kong stocks last year.
2023 is the year the Hong Kong Stock Exchange introduced the most connectivity optimization measures in the past eight years — the “Chapter 18C” rules were officially implemented to help more specialty technology companies go public, launch the “HKD-RMB double counter” model, lower stamp duty, officially launch the FINI platform, and promote the entry into force of GEM (GEM) reforms. The Saudi Arabia and Indonesia stock exchanges were successively included in the list of approved stock exchanges. Various reforms are aimed at introducing active water to stimulate market liquidity.
Up to now, both the Hang Seng Index and the Hang Seng Technology Index PE have been at extremely low levels of less than 2% in the past five years, and Hong Kong stocks, which are underrated, have relatively relaxed room for restoration. The market is betting that the Fed's interest rate hike will gradually end, compounded by the cautious political attitudes of various economies in the “election year,” and the geographical relationship is expected to ease. According to Securities Daily, market participants expect the popularity of Hong Kong stock IPOs to pick up in 2024 as the Hong Kong Stock Exchange listing rules are optimized and global liquidity is improved.
Are there any potential listed companies that bulls are paying attention to in the new year?
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Edit/Zixuan