IPO queue in HK, Tokyo stand out amid slow year: ECM watch

IPO queue in HK, Tokyo stand out amid slow year: ECM watch
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LONDON (Dec 5): The pipeline of initial public offerings in Hong Kong and Tokyo is taking off, even as the slow year for IPOs globally come to an end, thanks to improving sentiment toward equities in the region.

Tokyo’s stock exchange is taking the lead with 24 debuts expected, according to data compiled by Bloomberg. Daiei Kankyo Co Ltd. and Skymark Airlines Inc, the two largest listings slated for December, priced their shares on Monday to raise a combined US$563 million. The other deals expected this month, traditionally a busy one in the city, are much smaller. 

In Hong Kong, the largest among eight offerings confirmed for December is set to price on Monday. Sunshine Insurance Group Co could raise as much as US$950 million, potentially the fourth-largest in the Asian hub this year. Additionally, Chinese snack maker Weilong Delicious Global Holdings opened books earlier for an offering to price next week, while two other firms started pre-marketing their shares. 

While the number of offerings in Japan is similar to previous years, the improved sentiment toward Chinese equities has opened a window for a slew of listings in Hong Kong, after a drought in major deals the past year. 

Chinese equities outperformed Asian markets, as Beijing accelerated a shift toward reopening the economy. Wall Street banks have also turned increasingly bullish on Chinese stocks, with Citi suggesting investors look beyond the country’s Covid lockdowns.   

The total IPOs set to price in Hong Kong this month, along with the listing of a nickel producer on Dec 1, will boost proceeds in December to near US$1.8 billion. That’s the most for a month since September — even London hasn’t seen this much raised in a single month through IPOs this year.

To be sure, not every company can find buyers for their shares. Growatt Technology Co, a Chinese solar energy device maker, put its offering of up to US$1 billion in the city on hold as investors asked for a lower valuation, IFR reported last week.

Upcoming listings:

* Weilong Delicious Global Holdings
** Hong Kong stock exchange.
** Size up to US$141m.
** Expected pricing date Dec 8, listing date Dec 15.
** UBS, Morgan Stanley, CICC.

* OrbusNeich Medical Group
** Hong Kong stock exchange.
** Size TBD.
** Expected bookbuilding Dec 12-16, pricing Dec 16, listing Dec 23.
** BNP Paribas, CCB International, CICC.

* Fenbi Technology
** Hong Kong stock exchange.
** Size TBD.
** Pre-marketing from Dec 5.
** Citi, CICC, BofA Securities.

* Sunshine Insurance
** Hong Kong stock exchange.
** Size up to US$950 million.
** Expected pricing Dec 5, listing Dec 9.
** Huatai International, CICC, UBS, CCB International.

* Gaush Meditech
** Hong Kong stock exchange.
** Size up to US$86m.
** Expected listing Dec 12.
** Morgan Stanley, Haitong.

* Howkingtech International Holding
** Hong Kong stock exchange.
** Size up to US$15m
** Expected listing Dec 12.
** Ping An of China Capital.

* Meihao Medical Group
** Hong Kong stock exchange.
** Size up to US$19m.
** Expected listing Dec 14.
** Innovax Capital, Sinolink Securities.

* Huafang Group
** Hong Kong stock exchange.
** Size up to US$21m.
** Expected listing Dec 12.
** Haitong, CCB International.

* 3D Medicines
** Hong Kong stock exchange.
** Size up to US$55m.
** Expected listing Dec 15.
** CICC, China Securities International.

* Buyand International
** Hong Kong stock exchange.
** Size up to US$19m
** Expected listing Dec 15.
** Zhongtai International.

* DPC Dash
** Hong Kong stock exchange.
** Size TBD.
** Pre-marketing from Nov 21.
** Bank of America.

* Growatt Technology
** Hong Kong stock exchange.
** Size TBD.
** Pre-marketing until Dec 2.
** Credit Suisse, CICC.

* SAMG Entertainment
** Korea stock exchange.
** Size 46.73b won.
** Listing date Dec 6.
** NH Investment & Securities.

* I-Tail Corporation
** Thailand stock exchange.
** Size 21.1b baht.
** Listing Dec 9.
** Credit Suisse is a joint global coordinator.

* Genova
** Tokyo Stock Exchange.
** Size TBD.
** Price range Dec 5, listing Dec 14.
** SBI Securities.

* Skymark Airlines
** Tokyo Stock Exchange.
** Size up to 32.5b yen.
** Pricing Dec 5, listing Dec 14.
** Morgan Stanley, Daiwa, Bank of America.

* Daiei Kankyo
** Tokyo Stock Exchange.
** Size up to 40.8b yen.
** Pricing Dec 5, listing Dec 14.
** SMBC Nikko Capital Markets, SMBC Niko Securities.

SPACs to watch:

* Everest Acquisition Corp
** Hong Kong.
** Filed Sept 19.
** Promoters: Hony Partners, ABCI Capital
** ABCI, Citi.

* TechStar Acquisition Corp
** Hong Kong.
** Filed June 24.
** Promoters include China Citic Bank Corp’s overseas asset management, Zero2IPO and its founder.
** Zero2IPO Capital, China Securities International

* Destone Acquisition Corp
** Hong Kong.
** Filed April 8.
** Promoters: Wang Shi and Asia Investment Fund Management Ltd.
** Morgan Stanley.

* Black Spade Asia Acquisition Co
** Hong Kong stock exchange.
** Filed March 20.
** Promoters: Black Spade Capital, Black Spade Assets, Black Spade Acquisition Holding, Black Spade Asia Sponsor, BOCHK Asset Management.
** UBS is sole sponsor.

* A SPAC (HK) Acquisition Corp
** Hong Kong stock exchange.
** Filed March 15.
** Promoters: Arta TechFin (75% held by Adrian Cheng), A SPAC (Asia) Holdings, De Oro Strategics, JVSakk Asset Management.
** Haitong International is sole sponsor.

* Pisces Acquisition Corp
** Hong Kong stock exchange.
** Filed March 2.
** Promoters: OCI Asset Management Co., indirectly wholly-owned by OCI.
** CMBI is sole sponsor.

* Vivere Lifesciences Acquisition Corp
** Hong Kong stock exchange.
** Filed Feb 21.
** Promoters: VMS Asset Management, I-Mab Biopharma, Siu Wai Ng, Jielun Zhu and Ya Chun Chen.
** UBS is sole sponsor.

* Ace Eight Acquisition Corp
** Hong Kong stock exchange.
** Filed Feb 14.
** Promoters: ACE Promoter, Assos Omada Promoter.
** CMBC Capital is sole sponsor.

* Trinity Acquisition
** Hong Kong stock exchange.
** Filed Jan 31.
** Promoters: Li Ning, LionRock Capital (Cayman) Ltd, Astrapto Capital Partners (HK) Ltd.
** Credit Suisse, JPMorgan.

* Tiger Jade Acquisition Company
** Hong Kong stock exchange.
** Filed Jan 28.
** Promoters: Tiger Jade Capital Fund, Dragonstone Capital Management.
** UBS is sole sponsor.

More ECM-related developments we are following:

* Rainbow Children’s Medicare fell as much as 3.8% to its lowest intraday level since Nov 4, after about 14.7 million shares changed hands on NSE, according to data compiled by Bloomberg.
* Chinese snack maker Weilong Delicious Global Holdings Ltd is offering 96.4 million shares at HK$10.40-HK$11.40 each in its Hong Kong initial public offering, according to a statement to the Hong Kong exchange on Monday.
* Chicmax Cosmetic files post-hearing listing documents to HKEX. The filing indicates the HKEX has approved the company’s listing in Hong Kong.