HKG:3661

Hong Kong's IPO Pipeline Swells as Six Firms Launch Deals, Eyeing HK$20 Billion in Combined Haul

Hong Kong's listing market remained robust as six companies launched initial public offerings on Wednesday, collectively targeting nearly HK$20 billion in gross proceeds.The latest offerings come as companies seek to capitalize on robust investor appetite for artificial intelligence, semiconductor, and robotics-related stocks, helping sustain one of the busiest periods for new listings in Hong Kong in recent years.Among the companies launching deals, robotics maker Lingyi iTech (Guangdong) (HKG:1688, SHE:002600) is seeking the largest amount, aiming to raise up to HK$8.26 billion.The company secured commitments from 21 cornerstone investors who agreed to purchase about $406.9 million worth of shares.Analog integrated circuit maker SG Micro (HKG:3661, SHE:300661) is pursuing the second-largest offering, seeking up to HK$4.60 billion.Circuit Fabology Microelectronics Equipment (HKG:9630, SHA:688630), which manufactures equipment used in printed circuit board production, is targeting up to HK$3.24 billion and has secured 19 cornerstone investors who have committed about $196.6 million in shares.The other two issuers are artificial intelligence company Beijing Zhongke WengeAI Science and Technology (HKG:1956), which is seeking up to HK$900 million, and smart parking operator Keytop Parking (HKG:2272), which aims to raise about HK$399.9 million.The fundraising activity also includes Indonesian gold miner Merdeka Gold Resources (IDX:EMAS, HKG:6228), which is seeking to raise up to HK$2.39 billion through a Hong Kong depositary receipt offering.All six companies are expected to determine their offer prices by June 24, with allocation results due on June 25 ahead of their planned trading debuts on June 26.The latest offerings add to a strong year for Hong Kong's IPO market. Hong Kong's listing market got off to a strong start, raising HK$109.9 billion through 40 new listings in the first quarter, according to KPMG's latest report.The total was "nearly six times the amount raised and three times the number of new listings in the same period last year," KPMG said."Hong Kong's IPO pipeline is at a multi-year high with A+H listing applications reaching record levels. This depth of demand should sustain momentum in A+H listings through the rest of the year," the firm added.Nearly 80% of funds raised came from A+H and specialist technology listings, two segments KPMG expects will continue to underpin activity this year.Hong Kong Exchanges and Clearing proposed reforms in March aimed at boosting listing competitiveness, including easing requirements for companies with weighted voting rights structures and streamlining secondary listings for overseas-listed issuers.Despite tighter regulatory requirements, KPMG said the measures are not expected to materially affect listing activity and maintained its forecast that Hong Kong's IPO market will raise HK$350 billion in 2026.The flurry of IPO launches on Wednesday was likely driven by issuers aiming to complete listings before first-half disclosure deadlines, Kenny Ng, a strategist at China Everbright Securities International, was quoted as saying by Reuters.Ng added that he expects SpaceX's record listing to have only a limited impact on Hong Kong's IPO market because local investors have a relatively low participation rate in the company's share subscription."Instead, I believe the performance of the secondary market will have a more direct impact on investor enthusiasm for new listings," he said, as quoted by Reuters.