Hong Kong’s IPO market has seen two new listings this week, with Xinchuan Planning and Zhongan Smart Life making their debut on the Hong Kong Stock Exchange.
Xinchuan Planning, listed as 01284.HK, closed up 1.09% on its first day of trading, after being delayed for a day due to the suspension of the Hong Kong stock market on Monday. The stock received dividends for four consecutive days and closed at HK$1.08 per share on July 21, with a market value of over HK$600 million, representing a cumulative increase of 17.39% from the issue price. During its IPO period, Xinchuan received an overwhelming response, with an oversubscription rate of 44.2 times. However, the winning rate of one lot was only 30%, attracting significant attention.
Xinchuan Enterprises expects the Hong Kong advertising market to continue growing, surpassing pre-pandemic levels from 2024 onwards, according to the company’s prospectus.
On the same day, Zhongan Smart Life, listed as 02271.HK, closed up 2.54% on its first day of trading. However, its performance declined in the following days, closing at HK$1.08 per share on July 21, representing a cumulative drop of 8.47% from the issue price. The company experienced a delay in its planned listing on January 16, 2023, and some analysts speculated that the subscription fundraising situation may not have met expectations.
Zhongan Smart Life’s cornerstone investors also underwent changes, with Mingtai Investment withdrawing its investment and Wu Mingwu, chairman and president of Shanying International, investing 10.989 million Hong Kong dollars and 10 million Hong Kong dollars, respectively.
Overall, the IPO market in Hong Kong saw moderate activity this week, with two new listings. While Xinchuan Planning experienced a strong debut, Zhongan Smart Life faced challenges in maintaining its initial gains. Investors will be closely monitoring these companies’ performance in the coming weeks.