US$3b offering by state insurer PICC seen heating up Hong Kong market
Initial public offering by state-owned PICC may help revive the city's famed fundraising prowess, says global accounting firm
A widely expected US$3 billion share offering by state-owned People's Insurance Co (Group) of China (PICC) might help revive IPOs this month, according to Deloitte Touche Tohmatsu.
The global accounting firm said Hong Kong was succeeding in attracting more listings from overseas firms as the city remained an important gateway to the mainland. However, it says, the city might not retain its crown as the world's largest listings market for the fourth year running as the prospect of flotations by big state-controlled enterprises looked bleak amid signs of weak investor demand and a slump in the mainland stock market.
"Investor sentiment in Hong Kong is gradually picking up after some more positive economic data from China and the US," said Edward Au, a partner with the firm, adding a number of deals - including the long-awaited offering by PICC - are expected to hit the market this month.
Joseph Chan, an investment banker at Bank of China International, said the listings market was about to heat up again with a wave of share placements.
"Investors are showing strong buying interest in a number of sectors, with focus on blue-chip stocks that offer ample liquidity and fair discount," Chan told the .
According to two people familiar with the PICC deal, the company has started a pre-marketing campaign to raise up to US$3 billion through an H-shares listing.
