Three firms file for IPO in Hong Kong, suggesting a thawing of sentiment as protests run into 12th week
- Jiumaojiu International Holdings, a ‘fast-fashion’ restaurant chain, furniture maker Huisen Household, and Superdata Software submitted IPO applications on Wednesday night
- Fund raisers may be becoming ‘numb’ to the protests, which are heading towards the three-month mark
Three companies filed for initial public offering (IPO) in Hong Kong on Wednesday night, suggesting sentiment for fundraising may be starting to thaw, more than 12 weeks into a series of increasingly volatile anti-government protests that have shaken social and financial stability.
Jiumaojiu International Holdings Limited, a restaurant chain boasting “affordable delicacies” in China, was one of them. Its specific fundraising target is pending.
The other two firms that filed for IPO are Huisen Household International Group, a Chinese manufacturer of furniture, and Superdata Software Group, also based in mainland China.
IPO applications are starting to gather pace after a drought period. Megvii Technology, a Chinese company focused on artificial intelligence and backed by Alibaba, has filed for a Hong Kong IPO on Sunday. Reuters reported the firm aims to raise at least US$500 million.
Alibaba is the owner of the South China Morning Post.
It shows some issuers are back to schedule in terms of raising funds in Hong Kong, after the protracted demonstrations in the city damaged investment sentiment.
With the protest heading towards the three-month mark, people are becoming numb to them, said Kevin Leung, executive director of investment strategy at Haitong International Securities.