An IPO is a way for a company to raise money by selling shares to the public. In Hong Kong, IPOs are typically offered to institutional investors such as banks and mutual funds and individual investors who meet specific financial criteria.
The process of an IPO begins with the company filing a prospectus with the Hong Kong Stock Exchange. The prospectus contains details about the company and its business and information about the proposed IPO. Once the exchange approves the prospectus, the company can begin marketing its shares to potential investors.
The HKEx has a well-deserved reputation for being one of the world’s most sophisticated and well-regulated exchanges. Its close ties to mainland China make it an attractive place for companies to list their shares.
If you’re considering getting into the IPO game, these are a few of the best in Hong Kong.
ZhongAn Online P&C Insurance Co Ltd is China’s first online-only insurance company. It was listed on the HKEx in September 2013 and raised $1.5 billion.
The company is the world’s largest online-only insurance provider, with over 190 million users. It provides a wide assortment of insurance products, including life, health, property, automobile and travel insurance.
China Tower Corporation Ltd is the world’s largest tower operator and one of China’s biggest providers of telecommunications services. It was listed on the HKEx in August 2018 and raised $6.9 billion.
The company has over 1.9 million towers across China and provides services to all major Chinese telecoms operators, including China Mobile, ChinaUnicom and China Telecom.
CK Hutchison Holdings Ltd is a Hong Kong-based conglomerate with telecommunications, retail, sports and infrastructure sectors. It was listed on the HKEx in March 2018 and raised $17.5 billion.
The company is the largest operator of mobile networks in Europe and has over 50 countries worldwide. It is also the owner of the UK’s third-largest supermarket chain, ASDA.
Xiaomi Corporation is a Chinese technology company that designs, develops and sells smartphones, mobile apps, and other consumer electronics. It was itemized on the HKEx in July 2018 and raised $5.4 billion.
Xiaomi is the world’s fifth-largest smartphone maker and has a global market share of 14%. It is one of the most treasured tech start-ups globally, with a valuation of $54 billion.
Meituan Dianping is a Chinese online services company that offers food delivery, hotel booking, ride-hailing and other services. It was listed on the HKEx in September 2018 and raised $4.2 billion.
The company is the largest food delivery platform in China, with over 420 million active users. It is also the second-largest online travel agency in China, with over 260 million users.
AIA Group Ltd is a Hong Kong-based insurance company with operations in Asia, Europe and the United States. It was listed on the HKEx in October 2010 and raised $20.5 billion.
The largest independent insurance company in Asia has over 17 million customers in 16 countries. It is also listed on the New York Stock Exchange (NYSE) and has a market capitalization of $75 billion.
Alibaba Group Holding Ltd is a Chinese e-commerce company that operates several online and mobile platforms, including Taobao and Tmall. It was listed on the HKEx in November 2014 and raised $25 billion.
Alibaba is the world’s largest e-commerce company and has a market capitalization of $480 billion. It is also the biggest shareholder in Ant Financial’s Chinese online payment company.
The exchange has a long history of hosting some of the most successful IPOs globally. It will continue to be a popular destination for companies looking to raise money.
Investors interested in investing in these companies should be aware of the risks involved, but they can make a lot of money if they invest at the right time. IPOs can be a great way to get exposure to high-growth companies, and it is essential to do your homework before investing.
Take a look at Saxo capital markets for more information.