Two firms join rush to launch share sales
Mainland's Forgame seeks US$222 million in Hong Kong IPO as sentiment improves
At least two companies - a mainland online game maker and a local money lender - have joined a revival in the city's listing market, seeking to raise a combined US$235 million amid improving sentiment after a fall in oil prices.
Forgame, a Guangzhou-based developer of online and mobile games, began institutional book building yesterday in a bid to raise as much as US$222 million in its initial public offering.
The development came as bankers said investors' appetite for new shares had returned as Syria tensions eased and encouraging Chinese macro data boosted demand for growth stocks.
Founded in 2009, Forgame offers 31.37 million shares, of which 65 per cent are new shares, at an indicative range between HK$43.50 and HK$55 per share, translating to a price-earnings ratio of between 9.5 and 12 times next year's expected earnings.
Bankers said there was no cornerstone investment in Forgame's offering, but there was a group of unidentified anchor investors.