SF Holding's IPO: A Major Move in Hong Kong's Market Amid Trade Tensions

Tuesday, 19 November 2024, 05:46

IPO activity sees SF Holding aiming to raise as much as US$793 million amid trade tensions affecting investor sentiment. This offering is pivotal for Hong Kong's market recovery. Investor confidence is brewing, yet uncertainties linger as larger market dynamics play out.
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SF Holding's IPO: A Major Move in Hong Kong's Market Amid Trade Tensions

SF Holding's Ambitious IPO Plans

As China’s leading express-delivery company, SF Holding is gearing up to raise approximately HK$6.2 billion (US$793 million) through its Hong Kong IPO. The company is set to start accepting investor orders today with a planned listing on November 27. With an offering of 170 million shares priced between HK$32.30 to HK$36.30, the anticipated sale is poised to test the market's appetite for substantial listings.

Investors and Market Sentiment

  • SF Holding, valued at over 204 billion yuan (US$28 billion), has secured about US$205 million from cornerstone investors.
  • Noteworthy investors include Xiaomi, Oaktree Capital Management, and units related to property tycoon Henry Cheng Kar-shun.

Market Context and Future Outlook

The backdrop of rising trade tensions and improved sentiment from government stimulus efforts poses both challenges and openings. Despite raising over US$9 billion through IPOs this year in Hong Kong, the city grapples with generating momentum akin to the record-breaking fundraising periods of past years.

In a strategic move, Hong Kong authorities are accelerating the listing approval processes to enhance the city’s competitive edge as a fundraising hub. Joint sponsors for SF Holding’s offering include Goldman Sachs, Huatai Securities, and JPMorgan Chase.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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