Year-End IPO Frenzy: In a year-end race to the Hong Kong stock exchange, two Chinese firms, iMotion Automotive Technology and Henan Jinyuan Hydrogenated Chemicals, are sprinting to secure a combined total of $130 million in funding. The companies, seeking to go public, recently disclosed their plans and financial targets in regulatory filings.
iMotion, a player in the self-driving technology sector, aims to raise $84 million by offering 22.11 million shares at HK$29.65 per share. Interestingly, the initial public offering (IPO) has been scaled back from its initial ambitious target of $100 million, a move attributed to ongoing financial market volatility. Notably, iMotion had originally set out to raise up to $300 million, but concerns about market uncertainties prompted a prudent revision of its fundraising goal.
On a parallel track, Henan Jinyuan Hydrogenated Chemicals, a chemicals supplier, is eyeing up to $45.92 million in funding. The company plans to achieve this by selling 238.9 million shares within a price range of HK$1.10 to HK$1.50 each.
Also Read: British Firms Wary of Slowing Chinese Economy, Survey Reveals
As these companies gear up for their IPOs, the broader context of Hong Kong’s IPO market comes into focus. Despite these efforts, bankers are cautious about the potential impact on Hong Kong’s IPO market, which has been grappling with multi-year lows in new share sales. Data from LSEG reveals that the first three quarters of 2023 witnessed $2.7 billion raised in Hong Kong, a notable dip compared to the $4.1 billion recorded during the same period in 2022.
Amid these listing endeavors, lithium-ion battery manufacturer REPT BATTERO is also in the mix, finalizing the pricing for its Hong Kong IPO with an ambitious goal of raising up to $307.48 million.
While these companies navigate the complexities of the IPO landscape, industry analysts are poised to closely monitor their performance and assess the broader implications for Hong Kong’s capital market. These developments will offer valuable insights into the trajectory of the financial landscape as we approach the new year.
Our Reader’s Queries
How many IPOs so far in 2023?
In 2023, the US stock market saw a total of 154 IPOs, which is a 15% decrease from the previous year’s 181 IPOs. However, this number is significantly lower than the record-breaking 1,035 IPOs that were witnessed in 2021, with an 85% decrease.
What percent of IPOs succeed?
Based on a Nasdaq study of companies that have gone public since the 1980s, only 20% of them have been successful in their IPO. This implies that a staggering 80% of companies that go public end up being unprofitable when they make their debut on a stock exchange.
How do you buy IPO before it goes public?
To purchase an IPO, you’ll need a brokerage account and must meet the eligibility requirements. Once confirmed, you can request shares from your broker. Keep in mind that brokers typically have a set amount of shares available, so a request doesn’t guarantee access.
Are IPOs coming back?
Tech IPOs are expected to make a comeback in 2024. With interest rates on the decline and the Fed ensuring a soft landing during an election year, market conditions are looking favorable. This is great news for the tech industry, which has been eagerly waiting for a resurgence. The future looks bright, and investors can expect to see some exciting new offerings in the coming years.