Written by Scott Murdoch
SYDNEY (Reuters) – At least four companies ranging from a U.S.-based aircraft manufacturer to a Chinese artificial intelligence company launched initial public production in Hong Kong on Friday to raise up to $500 million, according to their regulatory filings.
Cirrus Aircraft, a Minnesota-based small jet aircraft manufacturer, aims to raise up to $197 million by selling 54.87 million shares in a price range between HK$27.34 and HK$28 per share.
Cirrus is expected to be valued at $1.3 billion in an IPO at the top of that range, and cornerstone investors signed up for about $109 million of available equity in the deal.
Cirrus was acquired by state-owned China Aviation Industry General Aircraft (CAIGA) in 2011. It will control about 85% of the company once the IPO is complete, according to Cirrus listing documents.
Ride-hailing app Chenqi Technology is selling 30 million shares at a range of HK$34 to HK$45.40 per share to raise up to $174 million.
Artificial intelligence company Shanghai Voicecomm is looking to raise $85 million by selling 4.36 million shares at a fixed price of HK$152.10 per share.
PayWang, a financial data analytics company backed by Ali Baba (NYSE:), is selling 9.62 million shares at a range of HK$36 to HK$40 per share to raise nearly $50 million.
Regulatory filings show that three smaller companies, GL-Carlink Technology, Ruichang International and Fangzhou, are looking to raise a total of $50 million.
The rush of IPOs comes as the value of new share sales in Hong Kong falls from $2.12 billion in the first half of 2023 to $1.46 billion in the first half of 2024, LSEG data showed.
Despite the weak performance in Hong Kong, bankers are hopeful that an increase in Chinese regulatory approvals and an increase in Indian deals will make Asia a hot capital market hub in the second half of 2024.