May 23, 2024

Three Hong Kong firms are launching initial public offerings (IPOs) targeted to raise $280 million today, Monday, September 18. As reported by Reuters, the popular Beijing AI software firm Fourth Paradigm will be leading the fundraising event. 

Fourth Paradigm was founded in September 2014 and has recorded a meteoric growth over the years. The company boasts several products with utilities in finance, healthcare, manufacturing, energy and power, retail, telecommunications, and other sectors.

The other two firms include the Chinese cloud hospital platform Neusoft Xikang and the mobile games operator ZX Inc.

IPO Participants Plan to Raise Funds Through Sales of Stocks

According to its regulatory filings, the AI company Fourth Paradigm plans to generate up to $144 million for its IPO by selling about 18.4 million of its shares. The shares are priced between HK$55.60 and HK$61.16 per share.

Further, the filings indicated that three cornerstone investors, with New China Capital Management at the top, have made their subscriptions. They opted for $96.8 million of the company’s stock, representing about 70.6% of the IPO value.

The second firm, Neusoft Xikang, a Chinese cloud hospital platform, has outlined the process of its IPO. The company proposes generating between $81 million and $101 million in the IPO.

Information from its regulatory filings revealed that the cloud hospital platform plans to sell 133.8 million shares to source the funds. The sales will be conducted at a price range of HK$4.76 to HK$5.91 per share.

ZX Inc., a mobile games operator, is the third company planning its IPO fundraising. With a focus on raising between $27 million and $34 million, the firm aims to sell its stock from HK$11 to HK$14 per share.

Going Public in Hong Kong (IPOs)

Initial public offering (IPO) is one of the fastest and easiest means most companies apply to grow their business brands. Though it offers the opportunity to generate capital seamlessly, it is a quick measure to advertise your brand within a specific locality.

Hong Kong has recently recorded an increase in IPOs from companies. Apart from the favorable market conditions in the region, Hong Kong Exchanges and Clearing Limited (HKEx) is one of the biggest global market operators.

HKEx subsidiaries include the Stock Exchange of Hong Kong and the Hong Kong Futures Exchange. Going public in Hong Kong offers businesses strong international connectivity and expanding presence. This is because Hong Kong is a major between China and the international markets.

Hong Kong offers the best processes that easily launch a company to wide categories of Chinese investors. It links firms to Stock Connect, which allows investors from different regions to inter-trade on stock markets. 

Further, IPOs in Hong Kong offer companies access to the region’s diverse pool of global investors. Such an increase in a firm’s investor base is a great potential to establish a more liquid market within a short period.

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