Busiest listing day of 2019 puts Hong Kong’s IPO demand to test

The flag of the Hong Kong Exchanges & Clearing Ltd. (HKEx), center, flies in the Central district of Hong Kong, China, on Wednesday, March 2, 2016. Photographer: Justin Chin/Bloomberg

Welcome to Hong Kong’s busiest day for stock debuts this year. Six companies are scheduled to start trading Friday, even as investor demand shows cooling signs after a frenzied October.

Shanghai Kindly Medical Instruments Co., which sells devices such as catheters, raised $106 million in the most popular sale among the six initial public offerings: Individual investors placed orders for 268 times the shares initially available to them. Oncology drugmaker TOT Biopharm International Co. was the second-biggest deal — $75 million — with its retail book covered by 13 times. Here’s the full list of Friday’s debutantes:

While the Hong Kong stock market has been one of Asia’s hottest in recent weeks, moms and pops are betting less money on new shares this month. The six newly listed companies pulled off an average retail subscription ratio of 56 times, down from 139 times for October listings, according to data compiled by Bloomberg.

Wild rallies have dwindled as companies vie to sell new shares. The three November debutantes before Friday brought an average first-day gain of 7%, compared with an 18% rally for October listings, data compiled by Bloomberg show.

Hong Kong IPOs have raised $21 billion since January, down 36% from the same period last year. A possible share sale by Alibaba Group Holding Ltd. may add about $10 billion to the tally.

Bloomberg

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.