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Chinese payment provider LianLian DigiTech files US$78 million Hong Kong IPO, less than a fifth of its target a year ago
- The company aims for a fifth of the US$500 million it originally sought in June 2023
- The downsized listing comes as Hong Kong’s stock market endures the lowest momentum for new listings since 2011
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LianLian DigiTech is seeking HK$612 million (US$78 million) in an initial public offering (IPO) in Hong Kong this week, a fraction of the US$500 million it had originally sought to raise in June 2023 as market conditions continue to dampen investor sentiment.
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The Hangzhou-based company is offering 55.9 million shares at HK$10.95 each, for expected proceeds of HK$485 million after underwriting fees and expenses, according to its prospectus filed with the Hong Kong stock exchange on Wednesday.
The firm, a provider of cross-border e-commerce payment services, said it would start taking orders from investors on Wednesday, with the listing set for March 28.
The downsized offering comes as the Hong Kong stock market endures the lowest momentum for new listings since 2011. Through February, five companies have raised HK$2.18 billion (US$279 million) from stock offerings in Hong Kong, according to data compiled by London Stock Exchange Group.
Last year, 27 IPOs, or 42 per cent of the total, ended the year below their offer prices, according to Bloomberg data. Hong Kong’s 2023 IPO value fell 53.5 per cent year on year to a 20-year low of US$5.9 billion from 68 listings, according to Refinitiv data.
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A number of blockbuster IPOs are sitting in the city’s pipeline awaiting better conditions, including the potential US$1 billion listings of home appliance maker Midea group and the highly anticipated listing of Alibaba’s Cainiao.
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