The start of the year was deemed one of the worst for initial public offerings in Hong Kong; companies experiencing even harder times have suffered over the last decade which struck their performance threat of coronavirus evaporating the pipeline.
According to the information released on Thursday, nearly 20 companies listed in the center in early January, have lost about 16% of their offer prices. Only three out of the total companies are trading above their listed prices. During the first week, prices dropped by 6%; the performance was reported as one of the worst over the previous decade.
Stocks in Asia have been beaten up by the deadly outbreak of coronavirus, with Hong Kong’s Hang Seng Index turning around every one of the additions it made in a meeting before the Lunar New Year celebrations that has provoked a binge of offer deals by organizations and investors.
Hong Kong’s IPOs suffered a dull performance during a hectic start to the year between 2010 and 2019. Only 2018 bought a healthy start for initial public offerings in Hong Kong; listing 25 companies in the IPO.
The Chinese restaurant chain, Jiumaojiu International Holding was the exception, since its price leaped more than 29% high of its offer price and mounted an extremely victorious IPO, with 638 extra applications reported for the subscription.
However, a few victories are not enough to drag up the collapsed market, and severe circumstances provoked by the coronavirus epidemic are expected to vanish the pipeline for the time being. Several flights towards mainland China have been canceled and workers suggested to stay at home and avoid work meetings; the situation will harm the smooth process of IPO.
Trans-cab Services Pte., a Singaporean taxi company, has just stopped work on its subsequent endeavor to list because of the infection. Chinese biotech firm InnoCare Pharma Ltd. has chosen to delay the meeting to check the interest for its Hong Kong listing, individuals familiar with the matter said.