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Alibaba-backed Qiniu renews bid for Hong Kong IPO after Midea boosts sentiment

Qiniu, a Chinese cloud service provider backed by Alibaba, is making a third attempt at a Hong Kong initial public offering

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Qiniu, a Chinese cloud service provider backed by Alibaba Group Holding, is making a third attempt at a Hong Kong initial public offering (IPO) after Midea Group’s successful debut lifted market sentiment.
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The Shanghai-based company submitted a new IPO application on Sunday after its previous filing expired earlier this month. A first attempt in June last year also did not come to fruition.

Qiniu plans to issue up to 234.7 million shares in Hong Kong, according to the approval it received from the China Securities Regulatory Commission in June. The company did not disclose a target amount for the fundraising.

The company’s prospective offering is expected to inject fresh energy into the city’s IPO market, building on the momentum created by Midea’s US$3.98 billion listing last week. The city’s stock exchange has received more than 100 new listing applications. Hong Kong has raised around HK$51 billion across 45 IPOs this year, according to an estimate by KPMG.
“I do expect the activity and this very positive momentum to carry on given that we’re seeing a lot of very good signs in the IPO market,” Bonnie Chan, the CEO of bourse operator Hong Kong Exchanges and Clearing, said after the trading debut of appliance maker Midea. More deals could come as mainland authorities continue to encourage leading companies to list in the city, she added.
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Chinese logistics giant SF Holding is reportedly preparing to launch a Hong Kong IPO that could raise up to US$2 billion. Hozon New Energy Automobile, which filed an application in June, said some aspects of its Hong Kong listing plan are progressing faster than expected as investors become more optimistic.
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