Hong Kong IPO 'over 1,500 times oversubscribed' in retail frenzy

HONG KONG • Investors are still flocking to initial public offerings (IPOs) in Hong Kong, with a Chinese eye-clinic chain drawing the heaviest demand in over a decade even after some of last year's hot deals fell below their offer prices.

Individual buyers placed orders for at least 1,557 times the stock initially set aside for them in the sale of C-Mer Eye Care Holdings, said people with knowledge of the matter. That is the highest retail participation in 11 years for Hong Kong IPOs worth at least US$50 million (S$66.6 million), data compiled by Bloomberg shows.

C-Mer, which counts Tencent Holdings chairman Pony Ma as a cornerstone investor, is seeking to raise up to US$73 million, with 10 per cent of the offering earmarked for retail buyers, the prospectus shows. Under a claw-back rule, the ratio will rise to 50 per cent if orders top 100 times the initial retail stock. It completed its order-taking yesterday and will start trading on Jan 15.

Yixin Group, an online car-loan provider backed by Tencent, has been trading below its IPO price since November. The sale was oversubscribed more than 500 times when the firm went public in the same month.

Razer, a maker of computer accessories for games, fell below its sale price last month before regaining the level. In a November offering, its offering was nearly 300 times oversubscribed.


A version of this article appeared in the print edition of The Straits Times on January 09, 2018, with the headline 'Hong Kong IPO 'over 1,500 times oversubscribed' in retail frenzy'. Print Edition | Subscribe