China tech IPO boom to continue for at least another year, says China Renaissance CEO
More big tech IPOs are in the pipeline, including Didi Chuxing, Jinri Toutiao, and Kuaishou, says Bao Fan
The boom in Chinese technology IPOs in Hong Kong is likely to continue for at least another year following a record number so far this year, says Bao Fan, CEO and founder of China Renaissance.
“The [IPO] window is open in Hong Kong, and will stay open,” Bao, whose investment bank has built a reputation as a key adviser on Chinese tech IPOs and M&As, said in an interview.
One of the main reasons for the boom is the reform in Hong Kong’s listing rules, which came into effect in April. The new rules allow companies with dual class shares to list and also makes it easier for pre-profit biotech firms to launch their IPOs.
Another driver is the development stage of the Chinese companies.
“In the past few years, many of these firms have made great progress under the support of financing from private equity funds. They have matured and reached the IPO stage.
“They are ready now. ”
By the end of last week, 13 Chinese tech and related companies had made their stock market debut in Hong Kong this year, raising a combined US$6.86 billion. The number and value were both the highest on record since 1995, according to data compiled by Dealogic.