Busiest Listing Day of 2019 Puts Hong Kong’s IPO Demand to Test

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(Nov 8): Welcome to Hong Kong’s busiest day for stock debuts this year. Six companies are scheduled to start trading Friday, even as investor demand shows cooling signs after a frenzied October.

Shanghai Kindly Medical Instruments Co., which sells devices such as catheters, raised $106 million in the most popular sale among the six initial public offerings: Individual investors placed orders for 268 times the shares initially available to them. Oncology drugmaker TOT Biopharm International Co. was the second-biggest deal -- $75 million -- with its retail book covered by 13 times. Here’s the full list of Friday’s debutantes:
Company Name    IPO Size    Retail Subscription Ratio
Shanghai Kindly      $106.1m    268
TOT Biopharm         $75.2m     13
Dalipal Holdings       $60.8m     2.5
Xinji Shaxi              $47.8m     4.6
Acme International  $16.1m     20.1
Beng Soon             $15.9m    26.4

While the Hong Kong stock market has been one of Asia’s hottest in recent weeks, moms and pops are betting less money on new shares this month. The six newly listed companies pulled off an average retail subscription ratio of 56 times, down from 139 times for October listings, according to data compiled by Bloomberg.

Wild rallies have dwindled as companies vie to sell new shares. The three November debutantes before Friday brought an average first-day gain of 7%, compared with an 18% rally for October listings, data compiled by Bloomberg show.

Hong Kong IPOs have raised $21 billion since January, down 36% from the same period last year. A possible share sale by Alibaba Group Holding Ltd. may add about $10 billion to the tally. - Bloomberg