Hong Kong Set for Blockbuster IPOs in Coming Week

(Bloomberg) -- Initial public offerings in Hong Kong are set to roar back next week with the launch of two multi-billion dollar deals.

Fresh off the back of Chinese online gaming company NetEase Inc.'s second listing in Hong Kong, which has raised $2.7 billion in what is the world's third-biggest initial share sale this year, e-commerce company JD.com Inc. is set to start taking orders on Friday evening for its own share sale in the city which could raise at least $2 billion, people familiar with the matter said.

In addition, China Bohai Bank Co., a mid-sized lender part-owned by Standard Chartered Plc, is also planning to launch an IPO in Hong Kong next week that could raise $2 billion, IFR reported. With Bohai Bank and JD looking to raise at least $4 billion combined, next week's deal value is likely to exceed the total IPO haul for 2020 in the financial hub, which currently stands at $3.47 billion, excluding NetEase.

It is a sudden lurch back to life for what was last year's busiest listing venue in the world, with over $40 billion raised. The activity coincides with a resurgence of IPO deals in the U.S. as well, where three companies raised more than $1 billion on Thursday alone. With the spread of the coronavirus outbreak from January onwards, IPOs slowed to a trickle earlier in the year as market slumps and volatility caused issuers to stay on the sidelines.

The ongoing market rebound will likely prompt the pent-up supply of issuance. Asian stocks are poised to cap a second straight week of gains and Hong Kong's Hang Seng Index this week bounced back to levels seen before China's shock move to crack down on dissent in the city.

Two health-care companies, Hygeia Healthcare Holdings and Kangji Medical Holdings, are also set to start gauging investor demand for their Hong Kong IPOs next week, IFR has reported. Biotech and health care have been among the few sectors to hold up in terms of IPOs, accounting for most of Hong Kong's largest deals this year -- prior to NetEase -- and drawing strong investor demand.

UPCOMING LISTINGS:

• NetEase Inc.
  • Hong Kong exchange
  • Size $2.7b
  • Listing June 11
  • CICC, Credit Suisse, JPMorgan
• JD.com Inc.
  • Hong Kong exchange
  • Size about $2b
  • Books open June 5, listing expected June 18
  • Bank of America, CLSA, UBS
  • Dada Nexus Ltd.
    • Nasdaq exchange
    • Size $336m
    • Listing June 5
    • Goldman Sachs, Bank of America, Jefferies
    • Legend Biotech Corp.
      • Nasdaq exchange
      • Size $423m
      • Listing June 5
      • Morgan Stanley, JPMorgan, Jefferies
      • Burning Rock Biotech Ltd.
        • Nasdaq
        • Size $100m
        • Filed May 22
        • Morgan Stanley, BofA, Cowen & Co., CMBI, Tiger Brokers

        More ECM situations we are following:

        • NetEase Inc. raised about HK$21 billion ($2.7 billion) in its Hong Kong stock offering, people with knowledge of the matter said, as Chinese companies grapple with rising tensions between Beijing and Washington
        • China's No. 2 online retailer JD.com Inc will start taking investor orders Friday for its second Hong Kong listing, according to people familiar with the matter, hot on the heels of NetEase Inc.'s $2.7 billion share sale in the city, as the U.S.-listed firms seek a foothold closer to home amid rising U.S.-China tensions
        • A multi-sector trident of companies is pricing shares worth about $1 billion on Thursday, showing the rebounding strength of U.S. initial public offerings even as the coronavirus pandemic continues and social justice protests spread
        • Legend Biotech raised $423m from a Nasdaq IPO after pricing the deal above the marketed range at $23 per share, IFR reported
        • Dada Nexus Ltd., an operator of crowd-sourced delivery platforms in China backed by JD.com Inc., has priced its U.S. initial public offering at $16 each and sold more shares than initially planned, according to a person with knowledge of the matter.

        See also:

        • Asia ECM Weekly Agenda
        • IPO data
        • U.S. ECM Watch
        • EU ECM Watch
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