Chinese tech firms iMotion and Neusoft keep IPO hopes alive, resubmit Hong Kong listing applications with improved financial results

Two Chinese technology companies have resubmitted their listing applications to the Hong Kong stock exchange, updated with their latest quarterly performance, but analysts said it is unlikely that they will launch their share offerings any time soon as market conditions remain sluggish.

iMotion Automotive Technology (Suzhou), a developer and provider of artificial (AI) automated driving systems, and Neusoft Xikang Holdings, a medical networking platform which connects local governments, medical institutions, patients and insurers, made their resubmissions late on Monday, in the expectation their initial public offerings (IPOs) will fetch a higher price. iMotion submitted its earlier application in April while Neusoft had applied in May this year.

“Companies chose to resubmit their filings because they think there is a higher and more reasonable valuation now,” said Kenny Ng, an equity strategist at Everbright Securities. “The overall Hong Kong stock market has been in the doldrums at the moment, but some sub-sectors are receiving big interest, so the relevant enterprises feel that this is a relatively good time to go for an IPO, which may also be one of the reasons.”

In March, the Hong Kong stock exchange amended its listing rules to provide a new listing pathway for specialist technology companies allowing lower revenue thresholds as the exchange sought to enhance its attractiveness amid geopolitical tensions. The rules are friendlier and aimed at drawing more US-listed Chinese firms to have their shares traded in the city, analysts said.