Source: Brokerage China Author: Yang Qingwan
The Hong Kong IPO market may have to wait until the second half of the year for a significant increase in fundraising scale.
In the first half of this year, 30 new IPO companies were listed on the Hong Kong market, with net fundraising of HKD 13.35 billion and oversubscription of HKD 160 million, which is basically the same as the same period last year in terms of quantity, but the fundraising scale has dropped by 26% year-on-year. The IPO with the largest fundraising amount is Cha Ba Dao, and the one with the largest oversubscription ratio is Ubiquitous Holdings, which is listed on the Growth Enterprise Market with over 2500 times oversubscribed.
In the ranking of sponsoring agencies, China International Capital Corporation Hong Kong still ranks first with 10 IPOs and 23.81% market share, while CITIC Securities International ranks second with 4 IPOs and 9.52% market share. If combined with CITIC Lyon, they have a total of 7 IPOs and 16.66% market share. Haitong International sponsored 3 IOs and had a market share of 7.14%, ranking third.
In June, there were 26 new IPO applications in Hong Kong, 10 more than in May. From the progress of IPO submission and hearing, the Hong Kong IPO market is expected to continue to rebound in the second half of the year, and the total fundraising scale for the year is likely to exceed that of last year.
The number of IPO listings is the same as last year.
In the first half of this year, the Hong Kong IPO market did not experience a small spring, and the fundraising scale once fell into freezing point. However, after the China Securities Regulatory Commission announced 5 policies to support Hong Kong, more companies submitted IPO applications to the Hong Kong market.
According to Wind data, a total of 30 companies have IPOs listed this year as of June 30, a decrease of 1 from last year, basically the same as the previous year. The IPO net proceeds were HKD 13.35 billion, with oversubscription of HKD 160 million. The net proceeds of IPO in the same period last year was HKD 17.866 billion, a year-on-year decrease of 26%.
Among them, the IPO with the largest fundraising scale is Cha Ba Dao, which raised a total of HKD 2.586 billion; followed by Suteng Juchuang with HKD 1.059 billion; and Jingtai Technology, the first listed company after the 18C reform, raised HKD 1.137 billion. Michael Group and Laopu Gold raised HKD 954 million and HKD 905 million respectively.
In terms of oversubscription ratio, 28 out of 30 IPOs were oversubscribed, accounting for 93.3%; 2 were undersubscribed, accounting for 6.7%. Among them, Ubiquitous Holdings, the GEM listed company that restarted after a hiatus of three and a half years, received more than 2500 times oversubscribed.
China International Capital Corporation and CITIC continue to lead the sponsoring institutions.
In the first half of the year, the top two sponsors in the Hong Kong IPO market were still China International Capital Corporation and CITIC, with a market share of more than 10%.
In the ranking of sponsoring institutions, China International Capital Corporation Hong Kong still ranks first with 10 IPOs and 23.81% market share. CITIC Securities International ranks second with 4 IPOs and a market share of 9.52%. If combined with CITIC Lyon, they have a total of 7 IPOs and a market share of 16.66%. Haitong International sponsored 3 IOs and had a market share of 7.14%, ranking third.
In addition, Junfu Financing and CMB International each received 2 IPO projects, while the remaining sponsors only had 1 IPO entry, including First Shanghai Financing, Yuexiu Financing, and J.P. Morgan, among others.
In the ranking of audit institutions, the concentration of the four major international accounting firms is very high. Ernst & Young and PwC both ranked first with 8 IPOs and a market share of 25%. Deloitte Kwan Wong Chan & Co. ranked second with 6 IPOs and a market share of 18.75%. RSM Hong Kong ranked third with 5 IPOs and a market share of 15.63%.
In the ranking of law firms, competition in the IPO business market is more intense, and the market share of sponsors and accounting firms is more dispersed. Among them, Beijing Jingtian & Gongcheng Law Firm ranked first with 10 IPOs and a market share of 6.47%; Beijing Tongshang Law Firm ranked second with 10 IPOs and a market share of 5.88%; Mai Puda (Hong Kong) and Beijing King & Wood Law Firm both ranked third with 9 IPOs and a market share of 5.29%.
It is highly likely that the market will continue to rebound in the second half of the year.
According to Wind statistics, a total of 123 companies submitted IPO applications to the Hong Kong Stock Exchange for hearing this year. Among them, 1 had passed the hearing but had not yet gone public, and 70 had submitted applications for the first time.
Looking only at June, Hong Kong added 26 new IPO applications, 10 more than in May. From the progress of IPO submission and hearing, the Hong Kong IPO market is expected to continue to rebound in the second half of the year, and the total fundraising scale for the year is likely to exceed that of last year.
In the first half of this year, 22 listed companies have been delisted from the Hong Kong stock market, including 14 delisted due to listing rules and 8 voluntarily withdrawn from the listing status through privatization and other means. Therefore, there are a total of 2610 listed companies in the Hong Kong market, including 2287 on the main board and 323 on the growth enterprise market.
In terms of industry distribution, the information technology industry has the largest total market capitalization, accounting for 25.76%; followed by the financial industry, accounting for 20.93%; and then non-essential consumption, accounting for 14.57%. It is worth mentioning that although the market capitalization ratio of the medical care and health industry is only 4.58%, the number of listed companies has reached 223, ranking as the fifth largest industry after non-essential consumption, real estate construction, and industry.
Editor/Lambor