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【IPO月报】11月港股IPO市场维持活跃 晶科电子股份超购倍数位列港史第二

[IPO Monthly Report] The Hong Kong stock IPO market remained active in November, with Jinko Electronics' subscription multiple ranking second in Hong Kong history.

Jingwu Financial News ·  Dec 6, 2024 01:59

Goldenwealth News | As we enter November, the Hong Kong IPO market continues to remain active. This month, a total of 7 companies successfully listed on the Main Board of the HKEX, covering various industries such as jewelry, biotechnology, and electronics manufacturing.

The subscription sentiment this month is high, with Crystal Optoelectronics witnessing an unprecedented surge in subscriptions, followed closely by Juyuan Genetics. However, the performance on the first day of listing remains similar to the previous month, with 3 out of 7 new stocks breaking and 1 maintaining flat.

On November 26, the 2nd HKEX China Forum was held in Shanghai. HKEX CEO Bonnie Chan Yi-ting expressed in her speech that they are closely collaborating with the Shanghai and Shenzhen Stock Exchanges on initiatives such as including REITs, introducing block trading mechanisms, and allowing RMB counters to be traded through Stock Connect. This signifies further deepening of connectivity between the two capital markets, providing more convenience for companies seeking secondary listings or dual primary listings.

Chan Yi-ting also mentioned that for companies already listed on the A-share market, if they meet specific conditions, they can enter a fast-track approval process when applying for a listing on the Hong Kong Stock Exchange. This move undoubtedly will attract more high-quality companies to choose Hong Kong as their international financing platform.

Looking ahead, as more innovative and high-growth companies join, the diversification of the Hong Kong IPO market will further enhance, providing more investment opportunities for global investors. With increasing policy support and gradual market improvement, it is expected that the Hong Kong IPO market will sustain a good development momentum.

Ernst & Young predicts that if there are large new listings in Hong Kong next year, the total fundraising for the year could reach 120 billion Hong Kong dollars, potentially returning to the top three globally.

November Fundraising Leader - S.F. Holding

Perhaps inspired by the successful listing of Midea Group in Hong Kong, S.F. Holding also initiated its IPO process in November and officially listed on the Hong Kong Stock Exchange on November 27, becoming the first 'A+H' listed company in the express logistics sector.

The company's journey to Hong Kong can be traced back to last year. The company previously submitted applications for listing in Hong Kong twice, in August 2023 and June 2024. They received the listing approval notice from the China Securities Regulatory Commission on May 31, 2024, and passed the listing hearing at hkex on November 10.

As a leader in the express logistics industry, s.f. holding raised a total of 5.831 billion Hong Kong dollars in this round of fundraising, slightly higher than CR Beverage, Horizon Robotics, and 5.407 billion Hong Kong dollars, making it the fundraising king in November. At the same time, the title of the 'second-largest IPO in Hong Kong this year' also puts them in a position to potentially achieve significant income.

In s.f. holding's third-quarter report, the company's cash and cash equivalents amounted to a high of 22.262 billion yuan. In addition, the company's free cash flow turned positive from -4 billion yuan in 2021 to 12.87 billion yuan in 2022 and 12.655 billion yuan in 2023. The free cash flow for the first three quarters of 2024 increased by +25.12% year-on-year.

Usually, when A-share listed companies move to be listed in Hong Kong, they may face a certain discount. Given that the company is well-capitalized and operates steadily, why would they still seek financing in the Hong Kong market?

It is believed that their reasons should be similar to midea group co., ltd, aiming to leverage Hong Kong's unique geographic location and historical background to attract attention and participation from international investors and institutions. Another reason is to pursue internationalization, moving from China towards the world. In the future, there may be more A-share companies taking the path of dual listing on both the A-share and Hong Kong stock markets.

Source: Hong Kong Stock Exchange Compiled by: Jinwu Financial News

November's oversubscribed king - Jinko Electronics Co.

Jinko Electronics Co.'s public offering was oversubscribed by over 5677 times, not only becoming the 'oversubscribed king' of new stocks in November and the whole year. The oversubscription multiple even exceeded the 4130.19 times oversubscription of NH Health (06606) which was listed on February 18, 2021, making it the second-highest oversubscribed new stock in the history of Hong Kong. However, it did not surpass the 6288 times oversubscription of Most Kwai Chung (01716), which was listed on March 28, 2018.

Source: Hong Kong Stock Exchange Compiled by: Jinwu Financial News

November's top difficulty in subscribing led by Crystal Clear Electronics Co., Ltd.

The frenzy of applying for shares has led to a soaring lottery difficulty. According to its prospectus results, Crystal Clear Electronics Co., Ltd. has a 0.24% lottery rate for one lot, while Most Kwai Chung had a 0.80% lottery rate when applying for one lot. To guarantee a chance to subscribe to Crystal Clear Electronics Co., Ltd., one would need to subscribe for 0.7 million shares, equivalent to 700 lots!

Source: Hong Kong Stock Exchange Compiled by: Jinwu Financial News

Best performance on the first day of listing in November - Crystal Clear Electronics Co., Ltd.

The subscription performance of Crystal Clear Electronics Co., Ltd. has amazed investors, and this dark horse has not disappointed the market. On the first day of listing, the opening price was 16.34% higher than the issue price, and it continued to rise, with the highest increase reaching 53.5% on that day, closing at 5.33 Hong Kong dollars, 47.65% higher than the issue price. Exiting at the high point during trading hours, without considering fees, would yield a profit of 1,950 Hong Kong dollars per lot; by closing price, the profit would be 1,720 Hong Kong dollars per lot.

Source: Hong Kong Stock Exchange Compiled by: Jinwu Financial News

Although the overall scale of the company is small, the current overall market cap is only over 2 billion Hong Kong dollars, the stir caused by the listing in Hong Kong this time is impressive.

It is reported that the company is a provider of intelligent visual products and system solutions, mainly focusing on the research and development, production, and sales of high-power reverse-mounted LED chips.

However, the company's product sales channels are relatively scarce, with most of the sales of its automotive intelligent visual products attributed to the Geely Group companies. The company's current Tier 1 customers include Geely Auto, Lynk & Co, Zeekr, Picovoice, Lotus Technology, and GAC, among others. Geely, Lynk & Co, Zeekr, Picovoice, and Lotus Technology are all brands controlled by the Geely Group. It is noteworthy that Li Xingxing, the son of Geely's chairman Li Shufu, indirectly invested in Crystal Technology by holding a 11.11% stake.

According to the prospectus, the revenue from Geely Group companies in 2021, 2022, 2023, and the five months ended May 31, 2024, was RMB 50.6 million, RMB 0.35 billion, RMB 0.706 billion, and RMB 0.327 billion, respectively, accounting for 3.6%, 24.8%, 38.0%, and 38.8% of the company's total revenue during the same period. The company expects the revenue from Geely Group companies to continue to increase in the future.

It is also worth noting that the 'king of oversubscription' without fundamental support will eventually show signs of fatigue over time, which will be reflected in the stock price. Shares with oversubscription multiples exceeding 400 times this year have mostly fallen below the issue price. Crystal Technology's cumulative increase in stock price has also narrowed to 4.16%, just a step away from falling below the issue price.

Source: Hong Kong Stock Exchange Compiled by: Jinwu Financial News

Recent submission overview:

In November, the peak of companies listing in Hong Kong saw a small peak, with a total of 26 companies submitting applications to the HKEX, setting a new high for the year in terms of monthly submissions. In addition, from December to the present, 3 companies have submitted filings.

Company Name Status Latest Release Date Sector
Beijing Saimu Technology Co., Ltd. Processing. 12/4/2024 Main board
Guangzhou Yinnuo Pharmaceutical Group Co., Ltd. - B Processing. 12/3/2024 Main board.
Bocanes vision cloud Processing. 12/2/2024 Main board
Wuhan Volkswagen Stomatological Medical Co., Ltd. Processing. 11/29/2024 Main Board.
New Jeep RV Co., Ltd. Processing. 11/29/2024 Main board
Nanjing Weili Zhibo Biotechnology Co., Ltd. - B Processing. 11/29/2024 Main board
Wisdom Holding Limited - W Processing 11/29/2024 Main Board
Shenzhen Xipuni Precision Technology Co., Ltd. Processing. 11/29/2024 Main board.
Beijing May 1 Vision Digital Twin Technology Co., Ltd. Processing. 11/29/2024 Main board.
Shanghai Cell Therapy Group Co., Ltd. In the process of handling. 11/28/2024 Main board.
Chang Feng Pharmaceutical Co., Ltd. In progress 11/28/2024 Main board
Shanghai Zhida Technology Development Co., Ltd Processing. 11/28/2024 Main board.
Shenzhen U-Drive Innovation Technology Co., Ltd. Processing. 11/28/2024 Main board
Xuanzhu Biotechnology Co., Ltd. - B Processing. 11/25/2024 Main board
Hansoh Pharmaceutical Group Company Limited - B Being processed 11/24/2024 Main board
Huarun Bio-technology (Qingdao) Co., Ltd. - B Processing. 11/22/2024 Main board
Furuitek (Zhejiang) Intelligent Technology Co., Ltd. Processing. 11/22/2024 Main board
Suzhou Ule Share Service Co., Ltd. Processing. 11/18/2024 Main board
Luxen Outdoor International Limited Processing 11/15/2024 Main board
Jushuitan Group Co., Ltd. Processing 11/13/2024 Main board
Shanghai Shubao International Group Co., Ltd. Processing. 11/13/2024 Main board.
Shengwei Era Technology Co., Ltd. Processing 11/13/2024 Main board
Pegasus Biomedical (Suzhou) Co., Ltd. - B Processing. 11/13/2024 Main board
Noebican Artificial Intelligence Technology (Chengdu) Co., Ltd. Processing. 11/12/2024 Main board.
Shanghai Fuyou Payment Services Co., Ltd. Being processed 11/8/2024 Main board
Borayton Technology Co., Ltd. Processing 11/8/2024 Main Board
Xidian Auto Drive (Hunan) Co., Ltd - P In progress. 11/7/2024 Main board.
Yibin City Commercial Bank Co., Ltd. In process. 11/7/2024 Main board.
mire group co., ltd Processing. 11/4/2024 Main Board

Source: Hong Kong Stock Exchange Compiled by: Jinwu Financial News

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