Enthusiasm for companies to list in Hong Kong continues. Wind data shows that as of November 17, 57 new IPO companies have been added to the Hong Kong Stock Exchange this year, with initial fundraising scale of approximately HK$71.583 billion, far exceeding last year's full year.
Since the fourth quarter alone, 14 companies, including Guofu Hydrogen Energy, China Resources Beverage and Midea Group, have been successfully listed in Hong Kong. At the same time, as of November 17, a total of 86 listing applications were being accepted by the Hong Kong Stock Exchange, including many star companies in fields such as autonomous driving and artificial intelligence, as well as many large A-share companies.
Since November, Hong Kong stock IPOs have entered an intensive hearing period. From November 10th to 14th, 5 companies have passed the hearing; at the same time, the pace of companies submitting forms has accelerated. 11 companies have submitted prospectuses during the month, and 4 companies submitted forms on November 13 alone.
Autonomous driving, artificial intelligence, etc.
Companies gather to go public
Autonomous driving and artificial intelligence companies have "gathered" to list in Hong Kong. In the autonomous driving industry chain, Black Sesame Intelligence, Horizon Robotics, and Sagitar Juchuang have been listed in Hong Kong.
On October 24, the smart driving technology Horizon Robot was officially listed on the Hong Kong Stock Exchange, raising a total initial capital of HK$5.4 billion, becoming the largest technology IPO project in Hong Kong this year.
Amid the craze, more autonomous driving companies have gone public in Hong Kong. On November 7, Cidi Smart Driving, a commercial vehicle autonomous driving technology supplier, also submitted a proposal to the Hong Kong Stock Exchange to be listed on the main board. According to incomplete statistics, there are many autonomous driving companies lining up for IPOs. In addition to Xidi Zhijia, Youjia Innovation and Zongmu Technology are also preparing to list in Hong Kong.
According to Ma Peiwei, president of Deloitte China Artificial Intelligence Research Institute (Hong Kong), autonomous driving companies require huge amounts of capital to support research and development. After several rounds of financing, the founder's shares are often diluted. The "different rights for the same shares" policy implemented by Hong Kong stocks allows company founders to maintain sufficient voting rights to maintain control of the company after the company is publicly listed.
In addition, artificial intelligence companies are also going public in Hong Kong. During the year, AI companies such as Qiniu Intelligence, Quzhi Group, and Shengtong Technology have successfully listed on the Hong Kong stock market. At the same time, AI companies in multiple segments such as Nobikan Technology, Yingsi Intelligent, Yunzhisheng, and iFlytek Medical have submitted their listings to the Hong Kong Stock Exchange.
On November 12, artificial intelligence company Nobikan Technology submitted a prospectus to the Hong Kong Stock Exchange. The prospectus shows that the company focuses on the industrial application of artificial intelligence technology and digital twins in the fields of AI+ transportation, AI+ energy, and AI+ urban governance.
Zhou Mingzi, executive director of Sullivan Greater China, told a reporter from Securities Daily that as the Hong Kong stock market shows a positive development trend, technology companies hope to seize the current favorable market opportunities and complete listings as soon as possible. Moreover, autonomous driving and artificial intelligence companies are on a track with broad market prospects and high growth potential. They can obtain financing support as soon as possible after listing, which is more conducive to the company's future planning and development. In addition, overseas investors also prefer technology-based companies that master core technologies and have independent intellectual property rights in these fields.
"A+H" team
Further expansion
While technological companies such as artificial intelligence and autonomous driving are rushing to the Hong Kong stock market, A-share listed companies are also planning to go public in Hong Kong to build an "A+H" dual financing platform.
In November, there will be another example of "A+H" stocks. SF Holdings has recently passed the hearing of the Hong Kong Stock Exchange and is currently undergoing road shows. It may officially complete the "A+H" dual listing on the Hong Kong Stock Exchange at the end of November.
According to incomplete statistics from reporters, since this year, in addition to Midea Group and Longpan Technology, which have successfully listed on the Hong Kong stock market, there are also many A-share companies such as Baili Tianheng, Jihong Shares, and Chifeng Gold that are planning to advance their listing plans in Hong Kong. At the same time, A-share companies such as iFlytek, Goertek, Nanshan Aluminum, and Tongrentang are also spinning off subsidiaries to list in Hong Kong.
"Since 2024, the Hong Kong stock market has gradually recovered, and leading A-share companies have gradually increased their confidence in the Hong Kong stock market, further promoting the 'A+H' financing layout." Zhou Mingzi explained that in the context of a large number of leading companies further promoting their international development strategies, The listing of Hong Kong stocks will further enhance the company's international image and international financing capabilities, and empower its international development strategy.
It is worth mentioning that in order to attract large mainland enterprises to list in Hong Kong, the Hong Kong Stock Exchange continues to optimize the listing mechanism and enhance market attractiveness. On October 18 this year, the Hong Kong Securities Regulatory Commission and the Hong Kong Stock Exchange announced the optimization of the listing review mechanism and a fast-track approval channel for A-share listed companies with a market value of not less than HK$10 billion to list in Hong Kong. On September 1, the Hong Kong Stock Exchange’s regulations on lowering the market capitalization threshold for specialized technology companies officially came into effect. The minimum market capitalization of “commercialized companies” was reduced from HK$6 billion to HK$4 billion. The minimum market value of "uncommercialized companies" has been reduced from HK$10 billion to HK$8 billion, which will help attract more innovative companies to IPO in Hong Kong.
Wind data shows that as of November 17, there were a total of 150 companies listed on the mainland and Hong Kong, mainly concentrated in the fields of diversified finance, medical care, materials, energy, etc., and most of them are large leading companies in the industry.
Venture capital “bets”
Hong Kong stock IPO exit
Behind the active push for companies to list in Hong Kong, there is also exit pressure from venture capital institutions. A number of venture capital institutions are eagerly waiting to exit through Hong Kong stock IPOs.
Horizon Robotics, a smart driving company, has received multiple financings since its establishment in 2015. Investors include many industrial capitals such as SAIC Group, GAC Group, Great Wall Motors, and well-known VC/PE institutions such as Yunfeng Fund, Wuyuan Capital, and Sequoia Capital. , the cumulative financing amount exceeded US$3.4 billion.
Cross-border e-commerce company Aoji is backed by investors such as Shenzhen Venture Capital, Sequoia China, and Midea Fund.
In fact, in order to land on the Hong Kong stock market as soon as possible, many companies have submitted Hong Kong stock IPO applications multiple times. Enterprises and investors are eager to exit through Hong Kong stock IPOs. Although Hong Kong stocks have long been controversial due to lack of liquidity and low valuations, the fundraising amount and market performance of large-scale new stocks in Hong Kong stocks during the year also attracted more financial attention, making them gradually become the focus of scientific and technological innovation companies and venture capital funds. Preferred markets.