Five firms plan to raise US$613m in Hong Kong as investor sentiment picks up
Companies plan to raise US$613m in total as investor sentiment shows signs of improving
At least five companies are poised to begin initial public offerings to raise more than a combined US$3.6 billion in Hong Kong this month as investor sentiment shows signs of improvement.
Mainland property firms CIFI and Future Land Development, local restaurant chain operator Tsui Wah, and bedding retailer Casablanca yesterday announced they will launch their offerings this month.
Between the four of them, the companies aim to raise a total of US$600 million.
Joining the listings rush, bedding retailer Casablanca announced it will raise about US$13 million. It plans to use the bulk of the net proceeds for expansion on the mainland.
Meanwhile, People's Insurance Company (Group) of China, or PICC, will begin its pre-marketing campaign for its H-share listing on Thursday, planning to raise about US$3 billion through a Hong Kong listing. The planned Shanghai listing has been put on hold pending regulatory approval.
"PICC is likely to list on the Hong Kong stock exchange first, and will get support from state-owned financial intuitions and the sovereign wealth fund," said a market source, who declined to be identified.
If it materialises, the deal could be the largest offering in Hong Kong this year, and the share could begin trading as early as December 7, the person said.
