At least four companies launch Hong Kong IPOs to raise about US$500 million

At least four companies ranging from a US-based jet manufacturer to a Chinese generative artificial intelligence (AI) firm launched Hong Kong initial public offerings (IPOs) on Friday (Jun 28) to raise up to US$500 million, according to their regulatory filings.

Cirrus Aircraft, a Minnesota-based small jet manufacturer, is aiming to raise up to US$197 million by selling 54.9 million shares in a price range of HK$27.34 to HK$28 per share.

An IPO priced at the top of that range would value Cirrus at US$1.3 billion, and cornerstone investors have subscribed for about US$109 million worth of shares available in the deal.

Cirrus was acquired by state-owned China Aviation Industry General Aircraft (Caiga) in 2011. It will control about 85 per cent of the company once the IPO is complete, according to Cirrus’ listing documents.

Ride-hailing app Chenqi Technology is selling 30 million shares in a range of HK$34 to HK$45.40 per share to raise up to US$174 million.

AI firm Shanghai Voicecomm is looking to raise US$85 million be selling 4.4 million shares at a fixed price of HK$152.10 per share.

Baiwang, a financial data analytical firm backed by Alibaba, is selling 9.6 million shares in a range of $HK36 to HK$40 each to raise up to nearly US$50 million.

Three smaller companies, GL-Carlink Technology, Ruichang International and Fangzhou, are looking to raise a combined US$50 million, regulatory filings showed.

The rush of IPOs comes as the value of new share sales in Hong Kong fell from US$2.1 billion in the first half of 2023 to US$1.5 billion in H1 2024 , LSEG data showed.

Despite the weak performance in Hong Kong, bankers are hoping an increase in Chinese regulatory approvals and a surge in Indian deals will make Asia an equity capital market hotspot in H2 2024. REUTERS