Chinese Courier SF Holding to start trading after HK$5.83 billion Hong Kong IPO

CHINA’S SF Holding’s shares are set to debut in Hong Kong on Wednesday (Nov 27), in what is expected to be the city’s final test for major listings this year.

In grey-market trading on Tuesday, the express-delivery firm’s stock jumped as much as 5.5 per cent from its issue price of HK$34.30, which stood in the middle of the marketed range, before erasing gains. The HK$5.83 billion (S$1 billion) listing is Hong Kong’s second-largest this year after appliance maker Midea Group’s US$4.6 billion debut.

The deal came as sentiment shifted on Chinese equities following Beijing’s stimulus blitz in late September. Investor mood, however, has started souring again amid disappointment over further fiscal measures and Donald Trump’s US election win this month, which rekindled concerns on trade tensions.

SF’s listing drew about US$205 million from cornerstone investors, which agreed to hold shares for at least six months in exchange for guaranteed allocation. Backing for the initial public offering (IPO) also came from entities tied to Hong Kong property investors.

The issue price stood at roughly a 25 per cent discount to its share price in mainland China, before SF started taking orders from investors. Other listings expected in the coming year include those of condiment maker Foshan Haitian Flavouring & Food and drugmaker Jiangsu Hengrui Pharmaceuticals, Bloomberg News reported.

Goldman Sachs, Huatai Securities and JPMorgan are joint sponsors of the offering. BLOOMBERG