World

The rush to list on Wall Street

Bloomberg October 29 | Updated on October 29, 2019 Published on October 29, 2019

The US and China may be locked in a prolonged trade war but that’s not stopping Chinese companies from trying to list on Wall Street.

Nine Chinese companies have filed for Initial Public Offerings in the US this month, including three overnight, making October the busiest of the year so far in terms of filings, according to data compiled by Bloomberg.

Canaan Inc., the world’s second-largest maker of Bitcoin mining machines, podcast and radio streaming app creator Guangzhou Lizhi Network Technology Co., and the operator of the Chinese co-living platform Danke Apartment, Phoenix Tree Holdings Ltd., all filed overnight. Meanwhile Fangdd Network Group and apartment rental business Q&K International Group are both taking investor orders this week.

In addition, the performance of Chinese IPOs in the US has been dismal. All but four of the 25 companies that have completed US listings this year are underwater. The average return is a 24 per cent slump from their offer prices and the companies have raised 63 per cent less than in the same period last year, the data show. Three companies that made their debuts last Friday, including NetEase Inc.’s education arm Youdao Inc., are now down by an average 24 per cent.

Still, two of the three largest deals this year have performed well. Luckin Coffee Inc. and GSX Techedu Inc., which raised $853 million between them, have respectively risen 20 and 44 per cent respectively from their offer prices.

Applications from Chinese companies to list in Hong Kong have also picked up this month to the most since June, with 13 filing for IPOs in what may signal an acceleration of deal activity after a summer drought.

Published on October 29, 2019
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