Hong Kong to debut four listings after HK$14.4b fundraising blitz

A crowded Tuesday on the bourse

Hong Kong is teeing up one of its busiest listing days of the year, with four companies hitting the market after collectively securing HK$14.4 billion. RoboTechnik Intelligent Technology Co. took the biggest slice at $660 million. The company, which supplies equipment and software that automate production for solar-panel and silicon-photonics chip makers, has seen its Shenzhen shares more than double this year. Late Monday on KGI Securities' gray-market platform, RoboTechnik changed hands at roughly 2% below its offer price. Its roster of cornerstone investors includes Temasek Holdings Pte, Sunpeak Asset Holdings Ltd., and E Fund Management Co.

Rounding out the group: Shenzhen Kinwong Electronic Co., a printed circuit board producer with a 2.5% global market share, raised $650 million and was about 7% lower on the gray market late Monday, per KGI. Red Avenue New Materials Group Co. brought in $382 million and traded around 17% down, while Direct Drive Tech Ltd., a maker of robotic components, secured $138 million and was about 5% up in gray-market dealings.

AI fever is lifting listings

Fundraising tied to artificial intelligence has powered a wave of first-time share sales in Hong Kong, even as broader stocks swung with geopolitical jitters and the ripple effects of fast-evolving AI tech. Pictet Alternative Advisors' principal of private equity technology, Stanislas Chanavat, put it this way: "People are rewarding growth and are excited by the size of the markets that many AI companies are targeting and the whole value chain," "If you are close to any semiconductors, pieces of data centers, memory, and the models and applications that AI companies are building, you obviously benefit from this imbalance of supply and demand. You have pricing power and you have basically accelerated growth trajectory on your revenue line."

The bigger picture and why it matters

Hong Kong saw $45.5 billion flow in during the third quarter across IPOs, share placements and block trades, a record for that time of year and nearly matching the $47.6 billion best-ever quarter in 2021, according to Bloomberg data. Among the 2024 highlights were a $10 billion follow-on by Alibaba Group Holding Ltd. in August; Zhongji Innolight Co., an optical transceiver manufacturer, raising nearly $8 billion with its Hong Kong debut; and Z.AI Co.'s $5 billion sale of stock and convertible securities in mid-September.

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What should you take from this? New money is finding its way to anything touching the AI supply chain, even with markets wobbling. That can pull attention - and capital - toward fresh listings and away from slower stories. If you watch where demand is hot and how new issuers trade out of the gate, you'll get a clearer read on where liquidity - and momentum - may show up next in your portfolio.

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