The world’s top IPO engine grinds to a halt and road shows sputter as bankers, deal makers stay home amid coronavirus lockdown
- InnoCare, China Bright Culture, Softex are among the companies that are said to be putting their IPO road shows on hold
- Investors, advisers in lockdown unable to sign new deals; bright spots are health care and online gaming
The spread of the novel coronavirus has paralysed Hong Kong’s deal-making hub as travel restrictions curb Chinese companies’ ability to meet global investors.
Hong Kong’s two-week compulsory quarantine for travellers from mainland China has also made it harder for the city’s financial services professionals – from accountants to bankers – to prepare companies for the limelight in public markets. Shoddy work or cutting corners in the mandatory disclosure of financial figures would mean jail time for the sponsors of initial public offerings (IPOs) under Hong Kong’s strict listing regime which is designed to protect retail investors from fraud.
Chinese biotech company InnoCare has postponed its roughly US$200 million IPO roadshow due to the virus outbreak, said two people familiar with the matter.
People are adapting, jumping on video conference calls, but invariably it is slowing down the process, said one institutional investor based in Hong Kong, declining to be named for discussing a confidential matter. Road shows by Chinese companies are not even possible, the banker said.
