Hong Kong tech IPO bonanza a mixed blessing as Coach, Glencore head for the exit
It’s been a mixed week for the city’s stock market, with a slew of successful technology debuts but two big-name international firms delisting because of thin trading
A series of successful recent initial public offerings suggests Hong Kong’s stock exchange may be turning into a listing hub for technology firms.
But the transformation is something of a mixed blessing as two large international companies with a traditional business focus announce their departure from the bourse.
The new trend shows the exchange’s efforts to get more “new economy” companies to list their shares here is bearing fruit, while past attempts to attract and retain international companies have proved less successful.
The exchange, traditionally a hub for financial and property companies, has seen several technology IPOs in recent weeks selling like hot cakes.
Though Hong Kong is one of the largest IPO destinations in the world in terms of funds raised, it has until now not been popular with technology companies. It ranked only 12th worldwide for tech IPOs in the first eight months of this year, below the likes of New York, Switzerland, Singapore and South Korea, according to Thomson Reuters data.
Globally, funds raised through tech IPOs in the same period surged threefold to US$18.87 billion from a year earlier.