City still world's top spot for IPOs

PUBLISHED : Wednesday, 21 December, 2011, 12:00am
UPDATED : Wednesday, 21 December, 2011, 12:00am


Hong Kong remains the world's top initial public offering destination, raising HK$251.1 billion so far this year, even though the figure dropped 44 per cent from last year.

Hong Kong surpassed New York, London and Shanghai in terms of funds raised in the first 11 months. It raised US$28.1 billion, almost twice as much as Shanghai Stock Exchange, which was the fifth largest listing destination, raising US$14.6 billion in the same period.

Hong Kong's IPO performance suffered less than elsewhere in the Asia ex-Japan region, Dealogics data shows. Issuers in the region raised US$75.9 billion through 551 offerings so far this year, down 52 per cent year on year. Investors prefer to put their money on existing stocks, already selling at a discount because of poor market conditions, said Kenny Tang Sing-hing, general manager of AMTD Financial Planning.

Yesterday, the Hong Kong stock market hit its all-year low, with mainboard turnover of HK$37.1 billion, compared with the average daily turnover of HK$71.8 billion in the first 11 months. It was the lowest since mainboard trade recorded HK$34 billion in February last year.

Mainland renewable energy equipment manufacturer and service provider Guodian Technology & Environment Group yesterday reduced its offer price. It halved the size of its initial public offering from HK$4.5 billion to HK$2.2 billion by reducing the number of shares on offer and priced the shares at HK$2.16 apiece, at the minimum of its target range of HK$2.16 to HK$2.42. The stock, originally scheduled to start trading tomorrow, will now trade from December 30.

Castor Pang, research director of brokerage firm Core Pacific Yamaichi, said investment sentiment was likely to remain weak before the Christmas holiday as investors were wary of the euro-zone situation.