Wednesday, February 24, 2010 | By: Rudi Butt

IPO


First Ranking

Hong Kong ranked first in the world in terms of initial public offering (IPO) in 2009. There were 73 IPOs raising a total of HK$244 billion (US$ 31 billion), more than the U.S. total of US$26.5 billion. The two Mainland exchanges, Shanghai and Shenzhen, were close behind at US$24.4 billion. 60 new listing are expected in 2010 to raise a total of US$39 billion, including industry giants such as United Company Rusal.

First Mainland Enterprise Listing

Tsingtao Brewery 青島啤酒股份有限公司 (0168.HK) was listed on the Hong Kong Stock Exchange (SEHK) on July 15, 1993 and became the first Mainland company to be listed in Hong Kong. Tsingtao issued 317.6 million H shares at $2.80 per share and raised HK$900 million. 43 days after the Hong Kong listing, Tsingtao also went public in Shanghai; making it the first Mainland company to be listed both in Hong Kong and Shanghai. Riding on the success of Tsingtao, five more Mainland companies were listed in the same year, and they were: Shanghai Petrochemical (0338.HK), Beiren Printing 北人印刷机械股份有限公司 (0187.HK), Guangzhou Shipyard 廣州廣船國際股份有限公司 (0317.HK), Maanshan Iron and Steel 馬鞍山鋼鐵股份有限公司 (0323.HK) and Kunming Machine 沈機集團昆明機床股份有限公司 (0300.HK).

16 years on, forty-eight (out of the total 73) newly listed firms were from the mainland. They raised US$26 billion, or 83 percent of the total raised through new listings on the Hong Kong market in 2009. By the end of 2009, there were 524 mainland firms listed in Hong Kong. Their market capitalization totaled US$1.3 trillion, representing 58 percent of the total market capitalization. The mainland firms had 72 percent of the average daily market turnovers in 2009.

First European Company Listing

Schramm Holding AG 星亮控股股份公司 (0955.HK) was the first listing by a German joint stock company (Aktiengesellschaft) on SEHK as well as the first European company listed on SEHK Main Board. The German based industrial coating manufacturer went public on December 29, 2009 and raised HK$185 million (US$24 million) through its IPO.

First ETF (shot form of exchange-trade fund) Listing

The first ETF listed on the SEHK was the Tracker Fund of Hong Kong 盈富基金 (TraHK) (2800.HK), on November 12, 1999. With an issue size of HK$33.3 billion (US$4.3 billion), TraHK's IPO was the largest IPO ever in Asia ex Japan at the time of launch. Since the IPO, approximately HK$ 140.4 billion (October 15, 2002) in Hang Seng Index constituent stocks has been returned to the market through TraHK's unique tap mechanism. TraHK is a unit trust that corresponds to the performance of the Hang Seng Index. The fund was established for the purpose to offload the substantial holding of Hong Kong shares procured by the Hong Kong Government in 1998 during the Asian Financial Crisis.

Electronic IPO (EIPO) Service

The Hong Kong Securities Clearing Company Limited, a wholly owned subsidiary of the Hong Kong Exchanges and Clearing Limited (HKEx), launched the EIPO service on May 17, 1999 for CCASS participants. CCASS, short form of Central Clearing and Settlement System, is a computerized book-entry clearing and settlement system for transactions in securities listed on the Stock Exchange of Hong Kong. Introduced and operated by Hong Kong Clearing in June 1992.

Internet IPO (iIPO) Service

On September 15, 2000, HKEx announced the introduction of an Internet Initial Public Offering (iIPO) service to provide individual investors with an additional electronic mechanism for submitting applications for IPOs. MTR Corporation Ltd (MTRC) was the first listing issuer using iIPO. The first government-owned organization to be privatized, MTRC was listed on October 5, 2000.

- TO BE COMPLETED -

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