Wed, Oct 30, 2019 - Page 11 News List

PRC firms rush to list on Wall Street

Bloomberg

The US and China might be locked in a prolonged trade dispute, but that is not stopping Chinese companies from trying to list on Wall Street.

Nine Chinese companies have filed for initial public offerings (IPO) in the US this month, including three overnight on Monday, making this month the busiest of the year so far in terms of filings, data compiled by Bloomberg showed.

Canaan Inc (嘉楠耘智), the world’s second-largest maker of bitcoin mining machines, podcast and radio streaming app creator Guangzhou Lizhi Network Technology Co (廣州荔枝網絡技術) and the operator of Chinese co-living platform Danke Apartment (蛋殼公寓), Phoenix Tree Holdings Ltd (鳳凰樹控股), filed overnight.

Fangdd Network Group (房多多網絡) and apartment rental business Q&K International Group (青客設備租賃) are taking investor orders this week.

The flurry of activity comes even as Washington threatens to delist Chinese companies from US exchanges and amid the blacklisting of Chinese technology companies.

In addition, the performance of Chinese IPOs in the US has been dismal: All but four of the 25 companies that have completed US listings this year are underwater.

The average return is a 24 percent slump from their offer prices and the companies have raised 63 percent less than in the same period last year, the data showed.

Three companies that made their debuts on Friday, including NetEase Inc’s (網易) education arm Youdao Inc (有道), are now down by an average 24 percent.

Still, two of the three largest deals this year have performed well.

Luckin Coffee Inc (瑞幸咖啡) and GSX Techedu Inc (跟誰學), which raised US$853 million between them, have risen 20 percent and 44 percent respectively from their offer prices.

Applications from Chinese companies to list in Hong Kong have also picked up this month to the most since June, with 13 filing for IPOs in what might signal an acceleration of deal activity after a summer drought.

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