More companies are making plans to raise funds from first-time stock offerings in Hong Kong, including those from the US, Singapore and mainland China, to capitalise on a rebound in optimism this year and a favourable outlook for Asia’s third-biggest stock market.
SAIC Mobility, a ride-hailing unit of a Chinese state-owned carmaker, unveiled its plan on Friday. Singapore-headquartered Mirxes Holding filed a proposal on Wednesday, reviving its plan under the stock exchange’s rule that allows yet-to-be profitable biotechnology firms to raise funds from the public.
“We will fully leverage the capital market to drive industrial development, accelerate technology and ecological research and development, and create a new travel ecosystem from services to smart transport,” SAIC Mobility said in a statement.
Others are also reviving their initial public offering (IPO) plans. US-based drug discovery firm Insilico Medicine submitted its application on Thursday, after its previous two attempts lapsed. CiDi, a Chinese self-driving technology supplier backed by Baidu and Legend Holdings, filed its plan on Thursday after its first attempt lapsed in November.
Hong Kong’s IPO market is gaining strength, with stellar returns for some of this year’s debutants including Mixue Group, Auntea Jenny and Duality Biotherapeutics. Cheap valuations and policy support are drawing global funds to the city amid rising geopolitical risks.
