Bottom line: Shares of BAIC and Dalian Wanda will be flat over the next few months after weak trading debuts, while Linekong shares will open down 5-10 percent if they debut before year-end.
Dalian Wanda dips in IPO
The year-end flurry of IPOs happening in Hong Kong is sputtering, with the 2 biggest offerings by shopping mall operator Dalian Wanda (HKEx: 3699) and car maker BAIC Motor (HKEx: 1958) both making weak trading debuts. That doesn’t bode too well for one of the year’s final remaining IPOs for Linekong, since other companies from the highly competitive video gaming sector haven’t done very well in their similar recent listings in Hong Kong. Read Full Post…
The following press releases and media reports about Chinese companies were carried on December 24. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
Citic Bank Buys BBVA’s Stake In Financial Unit For $1.05 Bln (English article)
Billionaire Wang’s Dalian Wanda (HKEx: 3699) Property Firm Falls in HK Debut (English article)
MIIT Says To Issue 4G FDD-LTE Licenses Next Year (Chinese article)
NQ Mobile (NYSE: NQ) Board Authorizes Up to $80 Mln Share Buyback (PRNewswire)
Enlight Media (Shenzhen: 300251), Qihoo (NYSE: QIHU) Form Online Video JV (English article)
Bottom line: Haitong’s new share offer is capitalizing on strong sentiment toward brokerages and could be used to fund an overseas purchase, while Wanda’s theme park foray looks too aggressive and is likely to run into problems.
Haitong raises $3.9 bln in share sale
Big fund-raising is in the headlines today as we head into the end of 2014, with real estate giant Dalian Wanda continuing to talk up its upcoming blockbuster IPO as Haitong Securities (HKEx: 6837; Shanghai: 600837) takes advantage of positive market sentiment to make a major new share float. Both plays come as Hong Kong and the US get set to officially wrap up a banner year for fund raising by Chinese companies, fueled by strong investor sentiment. Everyone is racing to finish their fund raising before December 31, since the first quarter of the year is typically a quiet period for such activity and there’s no guarantee this wave of positive sentiment will last into 2015. Read Full Post…
The following press releases and media reports about Chinese companies were carried on December 18. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
Baidu (Nasdaq: BIDU) To Buy Uber Stake In Challenge To Alibaba In China (English article)
Dalian Wanda Sets IPO Price At HK$48, Near Upper End Of Range (Chinese article)
Avon (NYSE: AVN) Ends Bribery Probe Tied to China With Guilty Plea, Fine (English article)
US Confirms Duties On Solar Goods From China, Taiwan (English article)
Unicom (HKEx: 762), China Telecom (HKEx: 728) To Expand LTE Trial Networks (Chinese article)
Bottom line: Linekong’s IPO should price in the middle of its range and post modest gains on its trading debut, while Dalian Wanda will price near the bottom of its range and debut flat to down slightly.
Linekong aims for December 19 trading debut
The year-end rush of IPOs is steaming ahead in Hong Kong, with online game operator Linekong popping back into the headlines for a year-end listing, as property giant Dalian Wanda starts to sell its own IPO story to investors. The former deal is relatively large for an online game company, aiming to raise nearly $200 million. Meantime, the latter could become the biggest IPO Hong Kong has seen in several years, with the potential to raise nearly $4 billion. Frankly speaking, neither of these deals looks too exciting to me as both come in sectors plagued by overcapacity and stiff competition. But that said, at least Dalian Wanda could be a good longer-term bet due to its status as one of China’s best-run and biggest commercial property developers. Read Full Post…
Bottom line: Feiyu’s weak IPO isn’t surprising and its shares will keep trading down, while Momo’s New York listing could get a slightly better reception but will open flat to up slightly in its trading debut this week.
Feiyu listing aims to raise up to $100 mln
The usual flurry of offshore Chinese IPOs has materialized as we head into the end of 2014, capping a banner year for such offerings. But the year-end rush has been surprisingly devoid of tech names, though we’ve just seen what could be one of the final such IPOs of the year with the Hong Kong debut late last week of mobile game developer Feiyu Technology. Feiyu’s weak debut comes as mobile social networking (SNS) firm Momo also gets set to make its New York trading debut this week, in what could well be the last 2 tech offerings in a banner year for the group. Read Full Post…
Bottom line: CGN’s shares are likely to rise 10-15 percent on their first trading day next week, while JD.com’s shares could rally over the next few days before resuming a longer downward trend towards their IPO price.
JD raises $620 mln in secondary offering
Just when the year-end rush of new share offerings appeared to be losing momentum with weak demand for property developer Dalian Wanda, the market is getting a lift with a stronger reception for 2 other share sales. The first of those has seen nuclear power plant builder CGN Power price shares for its IPO at the top of their range, making it the largest new Hong Kong listing in 2 years. The second deal saw strong demand for a secondary offering by e-commerce giant JD.com (Nasdaq: JD), helping it to raise another $619 million following its IPO back in May. Read Full Post…
Bottom line: Wanda chief Wang Jianlin could purchase a controlling stake in MGM as he looks to take over a Hollywood studio, while his Wanda Dalian property IPO will get a tepid reception but perform well over the longer term.
Wanda’s Wang Jianlin eyes Lions Gate, MGM
Property magnate Wang Jianlin is used to getting what he wants, but 2 new headlines indicate his Wanda Group may have to settle for compromise in a pair of its latest forays, one involving a Hong Kong IPO and the other involving his desire to purchase a major Hollywood studio. The former headline has Wang reportedly scaling back plans for a mega IPO in Hong Kong for Dalian Wanda, his group’s flagship property arm. The second and more intriguing news item has him seeking to buy a controlling stake in a major Hollywood studio, with Lions Gate (NYSE: LGF) and MGM mentioned as 2 possible candidates. Read Full Post…
A seasonal year-end rush of IPOs by Chinese firms moved into high gear late last week, when media reported that top movie chain operator Wanda Cinema Line and social networking up-and-comer Momo Inc had taken major new steps in their listing plans. The pair would join nuclear plant builder CGN Power, Beijing-based automaker BAIC and real estate developer Dalian Wanda, which were also in the headlines last week, in a year-end fund-raising frenzy that could raise more than $10 billion. Read Full Post…
The following press releases and media reports about Chinese companies were carried on November 28. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
Dalian Wanda To Seek HK Approval For Up To $6 Bln IPO On Monday: IFR (English article)
Weibo (Nasdaq: WB) Freezes Out Users Who Promote WeChat Public Accounts (Chinese article)
China To Allow Private Companies To Sell Broadband Services (English article)
BAIC Approved For Hong Kong IPO, To List On December 18 (Chinese article)
Xiaomi’s Lei Jun Invests 100 Mln Yuan In You+ Youth Apartment Rental Service (Chinese article)
