Akita Michinoku Capital reports on the Hong Kong Stock Exchange seeing busy day for IPOs, with seven companies debuting
According to Akita Michinoku Capital analysts, the debut of seven stocks on the main board resulted in a tie for the second-highest number of IPOs in one day
Analysts at Tokyo-based wealth management company Akita Michinoku Capital have reported that Hong Kong saw another busy day for IPO listings, with seven stocks debuting and one soaring over 190 per cent. Positive investor sentiment towards Hong Kong has resulted in an increase of capital being invested.
The debut of seven stocks on the main board resulted in a tie for the second-largest number of IPOs in one day which was set in January. The current record is eight IPOs in a single day on July 12, 2018, according to data collected by analysts at Akita Michinoku Capital.
Over twenty companies are listing on the Hong Kong stock exchange this month alone, which demonstrates that the inflow of investment capital into Hong Kong continues to defy doomsday speculation of capital flight amid the controversial national security law.
“Some of the most notable trades that we witnessed yesterday include Ophthalmic therapy provider OcuMension Therapeutics, as the IPO soared 193% to HK$43 per share in early trading hours, after offering 105.93 million shares at HK$14.66 each, which raised HK$1.55 billion,” reported Oliver Wright, Director of Corporate Equities at Akita Michinoku Capital.
“E-cigarette maker Smoore International Holdings offered 574.35 million shares at HK$12.40, raising HK$7.12 billion. It soared 126.6 per cent to HK$28.10. The property management company, Greentown Management Holdings, offered 477.56 million shares at HK$2.50, hoping to raise HK$1.19 billion. It rose 28% to HK$3.20.” continued Oliver.
“Then we had property managers, Zhenro Services Group, offering 250 million shares at HK$4.55, aiming to raise HK$1.14 billion. It advanced 11.9% to HK$5.09,” Oliver concluded.
Successful secondary listings by JD.com and NetEase last month assisted the two companies to raise more than US$6 billion between them, helping Hong Kong to close in on New York and Shanghai in the global race for the lead position.
Martin Thornton, Head of Corporate Trading at Akita Michinoku Capital, reported “Biotech firm Immunotech Biopharm was offering 100 million shares at HK$11, raising HK$1.1 billion. It increased 38.4% to HK$15.22. Online advertisers Adtiger Corporations offered 150 million shares at HK$0.86, raising HK$129 million. It increased 36% to HK$1.17.”
Hong Kong has been the world’s top destination for fundraising in seven of the past 11 years and is currently trying to retain its crown as the world’s biggest market for initial public offerings.