Hong Kong raises record US$19.2b in summer IPO haul

Trading volume smashed previous record in 2010.

Despite a weak benchmark stock index and some high-profile IPO disappointments including Xiaomi and China Tower, Hong Kong's IPO market is set for its largest summer haul in eight years after companies have completed US$19.2b ($150.71b) in first-time share sales since the beginning of June, reports Bloomberg.  

Also read: Hong Kong's blockbuster IPO year at risk from heating trade tensions

Such volume easily beats the previous record set in 2010, when companies raised US$13.4b in the three months through August, the data show.

Firms scrambled to pursue listings in the city after the bourse approved the sweeping reforms to its IPO rules by opening the door for tech companies with weighted voting rights and biotech firms with no track record of profitability.

Despite the completion of deals, the Hang Seng Index is trading down about 16% from its January high, compelling companies to adjust their fundraising expectations in response to weak market environment. 

Although the funds raked in by IPOs the first half of the year hit US$725m , there are indications that the liquidity crunch may be hitting smaller deals hard. 

Also read: Thriving IPO scene under threat as the Mainland eyes similar bourse reforms

China’s Qeeka Home, a provider of online interior design services, earlier postponed a US$278m Hong Kong IPO, whilst Uxin, a Chinese second-hand car sales site, halved the size of its planned New York float to US$225m citing challenging market conditions. 

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