China Renaissance, key adviser on tech IPOs, plummets on Hong Kong stock market debut
A record number of Chinese tech firms have listed in Hong Kong this year, only to see their shares slip amid a sluggish stock market
China Renaissance, a major adviser to and investor in Chinese technology IPOs, slumped on its own Hong Kong trading debut on Thursday.
The Beijing-based investment bank, which advised on the flotation of e-commerce site JD.com among others, fell 22 per cent to close at HK$24.70, compared with its IPO price of HK$31.80. The market value stood at HK$13.5 billion.
A record number of Chinese tech firms have listed, or applied to list, in Hong Kong this year. But many of those that have already debuted have seen their share price drop amid a sluggish broader stock market.
China Renaissance had priced its stock at the lower end of the price range, raising HK$2.7 billion (US$350 million) in its Hong Kong IPO.
The international tranche of shares – 90 per cent of those offered – was overbought by about four times, according to sources familiar with the deal. However, the retail portion was undersubscribed.
China Renaissance’s IPO came amid a rush of Chinese technology companies seeking to raise funds on overseas bourses.