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At least four companies launch Hong Kong IPOs to raise about $500 million

Published 06/28/2024, 12:24 AM
Updated 06/28/2024, 12:25 AM
© Reuters. FILE PHOTO: Bull statues are placed in font of screens showing the Hang Seng stock index and stock prices outside Exchange Square, in Hong Kong, China, August 18, 2023. REUTERS/Tyrone Siu/File Photo

By Scott Murdoch

SYDNEY (Reuters) -At least four companies ranging from a U.S.-based jet manufacturer to a Chinese generative AI firm launched Hong Kong initial public offerings on Friday to raise up to $500 million, according to their regulatory filings.

Cirrus Aircraft, a Minnesota-based small jet manufacturer, is aiming to raise up to $197 million by selling 54.87 million shares in a price range of HK$27.34 to HK$28 per share.

An IPO priced at the top of that range would value Cirrus at $1.3 billion and cornerstone investors have subscribed for about $109 million worth of shares available in the deal.

Cirrus was acquired by state-owned China Aviation Industry General Aircraft (CAIGA) in 2011. It will control about 85% of the company once the IPO is complete, according to Cirrus's listing documents.

Riding hailing app Chenqi Technology is selling 30 million shares in a range of HK$34 to HK$45.40 per share to raise up to $174 million.

AI firm Shanghai Voicecomm is looking to raise $85 million be selling 4.36 million shares at a fixed price of HK$152.10 per share.

Baiwang, a financial data analytical firm backed by Alibaba (NYSE:BABA), is selling 9.62 million shares in a range of $HK36 to HK$40 each to raise up to nearly $50 million.

Three smaller companies GL-Carlink Technology, Ruichang International and Fangzhou are looking to raise a combined $50 million, regulatory filings show.

© Reuters. FILE PHOTO: Bull statues are placed in font of screens showing the Hang Seng stock index and stock prices outside Exchange Square, in Hong Kong, China, August 18, 2023. REUTERS/Tyrone Siu/File Photo

The rush of IPOs comes as the value of new share sales in Hong Kong fell from $2.12 billion in the first half of 2023 to $1.46 billion in the 2024 first half, LSEG data showed.

Despite the weak performance in Hong Kong, bankers are hoping an increase in Chinese regulatory approvals and a surge in Indian deals will make Asia an equity capital market hotspot in the second half of 2024.

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