Hong Kong IPOs get boost as Sino Land, New World tycoons back SF Holding’s listing
Hong Kong billionaires are cornerstone investors in SF Holding’s US$793 million IPO, the first time tycoons have backed a listing in the city since 2022
Property tycoons are lending their support to the Hong Kong initial public offering (IPO) market for the first time in years, a move that could help fan the flames of a nascent recovery.
Billionaire Robert Ng Chee Siong’s Sino Land is one of the largest cornerstone investors in the US$793 million Hong Kong listing from courier service SF Holding that kicked off this week. An investment vehicle backed by the family of New World Development chairman Henry Cheng Kar-shun is also among the 10 parties that committed to buy stock in the offering in return for guaranteed allocation.
Companies seeking to list in Hong Kong used to regularly solicit backing from local property tycoons, revered as savvy investors in a city whose wealth was built on real estate. The practice waned in recent years as Chinese state-owned enterprises began taking more prominent roles – Hong Kong-based billionaires have not been cornerstone investors in any major offering priced in the city after the start of 2022, according to data compiled by Bloomberg.
“Having tycoons on a deal like this shows that they have a commitment to Hong Kong, they have a commitment to the Chinese economy, and they have a conviction in the medium to long term,” Andy Maynard, head of equities at China Renaissance Securities, said by phone on Wednesday. “It’s a vote of confidence.”
The volume of Hong Kong listings has been picking up in recent months after a quiet 2023, with fundraising volumes rising 92 per cent so far this year to US$9.1 billion, data compiled by Bloomberg show. SF – known as the FedEx of China – could rank as the city’s second-largest offering this year if it prices at the top end of the marketed range.
