Hong Kong IPO boom at risk as cornerstone backers get cold feet, sources say

With more than 60 per cent of new listings in the third quarter now trading below their issue prices, cornerstone investors – who typically receive guaranteed allocations in exchange for holding shares for six months – are reconsidering whether to subscribe to coming deals, according to people familiar with the matter.

At least one IPO originally planned for October had to be delayed until next month at the earliest after some institutional investors pulled out of verbal agreements to be cornerstone backers, they said.