By Scott Murdoch
SYDNEY (Reuters) – At least four companies, from a U.S.-based aircraft maker to a Chinese generative artificial intelligence company, launched initial public offerings in Hong Kong on Friday to raise up to $500 million, according to their regulatory filings. .
Cirrus Aircraft, a small Minnesota-based aircraft maker, aims to raise up to $197 million by selling 54.87 million shares in a price range of HK$27.34 to HK$28 per share.
An IPO priced at the top of that range would value Cirrus at $1.3 billion, and major investors have subscribed to about $109 million in shares available 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 completed, according to Cirrus’ listing documents.
Calling app Chenqi Technology is selling 30 million shares in a range of HK$34 to HK$45.40 per share to raise up to $174 million.
Artificial intelligence company Shanghai Voicecomm is seeking to raise $85 million by selling 4.36 million shares at a fixed price of HK$152.10 per share.
Baiwang, a financial data analytics company backed by Alibaba (NYSE:), is selling 9.62 million shares in a range of HK$36 to HK$40 each to raise up to nearly $50 million.
Three smaller companies, GL-Carlink Technology, Ruichang International and Fangzhou, are seeking to raise a combined $50 million, regulatory filings show.
The IPO rush comes as the value of new share sales in Hong Kong fell 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 expect a rise in Chinese regulatory approvals and an increase in Indian transactions to make Asia a capital market hotbed in the second half of 2024.