Bottom line: Weak pricing for Dali Foods’ Hong Kong IPO reflects investor uncertainty about China’s economy and stock markets, though the shares could briefly rise on their debut due to support from state-backed investors.
IPO for snack maker Dali draws tepid demand
A lukewarm reception for an upcoming IPO from snack maker Dali Foods is providing the latest evidence that global appetite for Chinese offerings is still quite wobbly. Dali has cut the size of its fund-raising plan by about 20 percent, following in the footsteps of China’s oldest investment bank CICC (HKEx: 3908), which made a similar reduction for its IPO whose shares made their trading debut last week.
The weak sentiment reflects uncertainty about China’s domestic stock markets, which reflects uncertainty about the nation’s broader economy that is showing signs of slowing. Hong Kong’s stock markets have become increasingly synced with far more volatile mainland stock markets, which soared in the first half of this year, only to come crashing back to earth during a massive summer sell-off. Read Full Post…
Bottom line: Legend Group’s IPO should get a solid reception, and Alibaba’s separately listed drug and film units should also perform well over the next few years as the Hong Kong stock exchange gains popularity for China tech firms.
Legend makes first public filing for HK IPO
A pair of stories today are casting a spotlight on Hong Kong and its future potential as a hotbed for Chinese tech listings. One of those involves e-commerce leader Alibaba (NYSE: BABA), which wanted to make its record-breaking IPO in Hong Kong last year but ultimately chose New York due to ownership issues. The second involves Legend Holdings, parent of PC giant Lenovo (HKEx: 992), and one of China’s oldest and most respected private tech companies.
The first news bit has Alibaba injecting the pharmacy business from its popular Tmall online shopping mall into its Hong Kong-listed Alibaba Health (HKEx: 241) unit. The second has Legend Holdings making its first public filing for a long-planned listing in Hong Kong that should happen later this year, including some of the first official financials we’ve seen for the IPO. Read Full Post…
The following press releases and media reports about Chinese companies were carried on April 16. To view a full article or story, click on the link next to the headline.
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Legend Group Files For Hong Kong IPO, 2014 Profit Reaches 4.1 Bln Yuan (Chinese article)
Alibaba Injects $2.5 Bln Online Pharmacy Business Into Alibaba Health (HKEx: 241) (English article)
The following press releases and media reports about Chinese companies were carried on March 17. To view a full article or story, click on the link next to the headline.
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Hunan TV’s Online Video Platform Mango TV Lands 1 Bln Yuan Series A – Source (English article)
Tencent (HKEx: 700), Shanda Literature Units Join To Form Online Reading Group (Chinese article)
NZ’s Fonterra Buys Stake In China’s Beingmate (Shenzhen: 002570) For $553 Mln (English article)
Legend Group Plans July IPO, To Raise Up To $3 Bln – Report (Chinese article)
Consortium to Acquire Shanda Games (Nasdaq: GAME) Adds New Members (PRNewswire)
Bottom line: Upcoming Hong Kong IPOs for nuclear energy firm CGN Power and real estate developer are likely to do well, while a third listing for car maker BAIC could get a more lukewarm reception.
Dalian Wanda seeks approval for $6 bln HK IPO
New York has posted a banner year for Chinese IPOs, culminating with the record-breaking $25 billion listing for Alibaba (NYSE: BABA) in September. But Hong Kong is showing it still has plenty to offer too, with a flurry of major new listings coming in the final month of 2015. At least 3 major new offerings are bubbling around the headlines as we head into December, led by one for China’s largest nuclear plant builder, CGN Power Co. Meantime, Beijing-based auto maker BAIC and property giant Dalian Wanda are also revving up for what could well be 2 of the biggest listings for the year. Read Full Post…
