Hong Kong IPOs Face Sluggish Debuts Despite Raising HK$14.4 Billion

Hong Kong welcomed four companies to start trading on Tuesday after they raised a combined HK$14.4 billion (US$1.83 billion) – but three opened below their offer prices, adding pressure to an already sluggish month for initial public offerings (IPOs).

Shenzhen Kinwong Electronic, which priced its shares at the top of the marketed range at HK$69.88, plunged as much as 8.1 per cent on its Hong Kong debut after raising HK$5.1 billion, though the stock later recovered those losses and rose nearly 11 per cent above its offer price.

The volatile debuts followed a mixed third quarter for Hong Kong listings. As of September 22, 26 companies had listed in the city during the quarter, including blockbuster IPOs from Zhongji Innolight, Shein and Luxshare, according to the city’s bourse operator.