Hottest Hong Kong IPOs of Last Two Years Have Let Down Investors
This article is for subscribers only.
Despite the frenzied debuts of Hong Kong’s most popular initial public offerings over the past two years, the companies’ share prices have slumped an average 22% since their listings, according to data compiled by Bloomberg.
In the city’s 20 most-subscribed offerings, individual investors placed orders for 442 to 6,289 times the stock initially available to them. With an average debut rally of 64%, most of the 20 firms saw their peaks in the first few trading days. Small caps dominate the hot IPO list, except for China Literature Ltd., Ping An Healthcare and Technology Co., and Yixin Group Ltd.