Chinese internet firms jump on IPO bandwagon
Hong Kong listings planned by Cogobuy and Locojoy follow JD.com's push for US share sale
Two mainland internet firms, Cogobuy and Locojoy, are planning initial public offerings with the aim of raising up to US$400 million combined in a Hong Kong market that is seeing improving sentiment.
An easing in the credit squeeze on the mainland is providing added encouragement for the listing candidates, which are also hoping to tap some of the enthusiasm seen for some e-commerce offerings last year.
Cogobuy, a Shenzhen-based e-commerce operator specialising in sales of electronic components, is looking to raise as much as US$300 million in the second quarter. The company sells products such as integrated circuits from Intel to mainland technology giants such as Lenovo and Huawei.
Locojoy, a Beijing-based developer of mobile and web games, plans to raise about US$100 million in its Hong Kong share sale, also targeted for the second quarter.
Jones Lang LaSalle said in a report in September last year that the mainland's e-commerce business would exceed US$1 trillion by 2020, making it the world's largest. The value of goods and services purchased online by mainlanders in 2020 will be the equivalent of the world's 16th largest economy, in today's terms.