What are the highlights for Alibaba's subsidiary going public in Hong Kong through SPAC? Why did the market react coldly to all three new stocks experiencing significant falls below their offering prices?
On July 7th, Financial Network brought you weekly news of new H shares.
As of the time of writing, one company has submitted an application this week (July 1st to July 7th), no companies have passed the listing hearing, and seven companies are issuing shares, along with three new shares being listed.
Let's look at the companies that submitted an application this week:
On July 2nd, Huideshaogou-Z (07841.HK) announced the De-SPAC transaction. The company signed a business merger agreement with the target company on June 28, 2024, and also signed nine PIPE investment agreements. Haitong International and CMB International are the joint sponsors of this transaction.
Note: The De-SPAC (de-SPAC) process refers to the process in which a SPAC company that has already obtained listed status acquires a target company with actual business as a shell, and is the most critical part of the entire SPAC financing cycle.
The announcement shows that the target company is a leading data-driven digital business solution company in Southeast Asia. According to data from Zhoushi Consulting, based on revenue in 2023, the target group ranks second among all digital business solution platforms in Southeast Asia. Before the De-SPAC transaction was completed, Alibaba Singapore, a subsidiary of Alibaba Group, was the largest external investor in the target company, with a direct shareholding of 47.22%.
Seven other companies are also issuing shares on the Hong Kong Stock Exchange this week:
1) Ruqi Chuxing (09680.HK): Issued shares from June 28th to July 5th, 2024, with a total of 30.0048 million shares sold globally, of which approximately 10% are sold in Hong Kong and approximately 90% are sold internationally. The issuance price is HKD 34-45.4 per share, with 100 shares per hand, and the expected shares will begin trading on the Stock Exchange of Hong Kong at 9:00 am on July 10th, 2024.
The company has entered into cornerstone investment agreements with GAC Group, Xiaoma Zhixing, Voyager (controlled by Didi Global Inc.) and WeRide. The cornerstone investors have agreed to subscribe to a number of saleable shares with a total amount of US$10.2 million to US$10.5 million at the issue price subject to certain conditions being met.
2) Baiwang Stock (06657.HK): Issued shares from June 28th to July 4th, 2024, with a total of 9.262 million shares sold globally, of which approximately 10% are sold in Hong Kong and approximately 90% are sold internationally. There is also an additional 15% over-allotment option. The highest issuance price is HKD 40 per share, with 100 shares per hand, and the expected Hong Kong shares will begin trading on July 9th, 2024.
The company has entered into a cornerstone investment agreement with Jiangsu Yuanli Industrial Investment Co., Ltd. (Jiangsu Yuanli). The cornerstone investor has agreed to subscribe to a certain number of saleable shares at the issue price with a total of approximately HKD 260 million being available for purchase.
3) Ruichang International Holdings (01334.HK): Issued shares from June 28th to July 5th, 2024, with a total of 0.125 billion shares sold globally, of which approximately 10% are sold in Hong Kong and approximately 90% are sold internationally. There is also an additional 15% over-allotment option. The issuance price is HKD 1.05-1.39 per share, with 2,500 shares per hand, and the expected shares will begin trading on the Stock Exchange of Hong Kong at 9:00 am on July 10th, 2024.
The company has entered into cornerstone investment agreements with Huangshan Jiantou Private Equity Investment Management Co., Ltd. (Huangshan Jiantou), Huangshan Chenghe New Industry Equity Investment Partnership Enterprise (Limited Partnership) (Huangshan Chenghe New Industry) and Emsdom Limited (Emsdom). Under certain conditions and restrictions, cornerstone investors have agreed to subscribe to or cause designated entities to subscribe to a number of saleable shares worth approximately HKD 57.8 million at the issue price.
4) Guanglian Technology Holdings (02531.HK): Issued shares from June 28th to July 10th, 2024, with a total of 63.6 million shares sold globally, of which approximately 10% are sold in Hong Kong and approximately 90% are sold internationally. The issuance price is HKD 4.7-5.3 per share, with 500 shares per hand, and the expected shares will begin trading on the Stock Exchange of Hong Kong at 9:00 am on July 15th, 2024.
The company has entered into cornerstone investment agreements with Guohuilian Equity Investment Fund Partnership Enterprise (Limited Partnership) (Guohuilian), in which it has agreed to subscribe (subject to various conditions) to HKD 88 million (cornerstone placement) of the public offering shares.
5) Ark Pharmacies (06086.HK): Issued shares from June 28th to July 4th, 2024, with a total of 23.8 million shares sold globally, of which approximately 10% are sold in Hong Kong and approximately 90% are sold internationally. There is also an additional 15% over-allotment option. The issuance price is HKD 7.6-8.36 per share, with 500 shares per hand, and the expected shares will begin trading on the Stock Exchange of Hong Kong at 9:00 am on July 9th (Tuesday), 2024.
6) Shengtong Technology (02495.HK): Issued shares from June 28th to July 5th, 2024, with a total of 4.36566 million H shares sold globally, of which approximately 10% are sold in Hong Kong and approximately 90% are sold internationally. There is also an additional 15% over-allotment option. The issuance price is HKD 152.1 per H share, with 20 shares per hand, and the expected shares will begin trading on the Stock Exchange of Hong Kong at 9:00 am on July 10th, 2024.
7) CriseTech (02507.HK): Issued shares from June 28th to July 9th, 2024, with a total of 54.8759 million shares sold globally, of which approximately 10% are sold in Hong Kong and approximately 90% are sold internationally. There is also an additional 15% over-allotment option. The issuance price is HKD 27.34-28 per share, with 100 shares per hand, and the expected shares will begin trading on the Stock Exchange of Hong Kong at 9:00 am on July 12th, 2024.
In addition, Hong Kong stocks welcomed three new listed companies this week:
1) On July 2nd, Yuanxu Technology (08637.HK) fell nearly 40% on its first day of listing and continued to decline in the following days. As of July 5th, the cumulative decline from the issue price is 50.41%. The total market value is less than HKD 200 million.
On July 3, Zhonggan Communication (02545.HK) fell by nearly 50% on its first day of listing, followed by a volatile decline. As of July 5, the company's stock price has fallen 56% from its issue price, with a total market value of about HK $0.35 billion.
During the public offering phase, Zhonggan Communication received 195.99 times subscription, providing telecommunication infrastructure construction and digital solution services. It was once regarded by the market as the "first share of computing power infrastructure." However, due to the company's excessive dependence on three major telecommunications operators and other major customers, it has also triggered some negative sentiment from investors.
On July 3, Jingfa Property (01354.HK) fell by 11.47% on its first day of listing. As of July 5, the stock is still in a state of breaking and falling, with a cumulative decline of 21.87% from the issue price, and a total market value of nearly HK $0.4 billion.