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Three companies filed for initial public offering (IPO) in Hong Kong on Wednesday night, suggesting sentiment for fundraising may be starting to thaw, more than 12 weeks into a series of increasingly volatile anti-government protests that have shaken social and financial stability.
Jiumaojiu International Holdings Limited, a restaurant chain boasting "affordable delicacies" in China, was one of them. Its specific fundraising target is pending.
The other two firms that filed for IPO are Huisen Household International Group, a Chinese manufacturer of furniture, and Superdata Software Group, also based in mainland China.
IPO applications are starting to gather pace after a drought period. Megvii Technology, a Chinese company focused on artificial intelligence and backed by Alibaba, has filed for a Hong Kong IPO on Sunday. Reuters reported the firm aims to raise at least US$500 million.
Alibaba is the owner of the South China Morning Post.
It shows some issuers are back to schedule in terms of raising funds in Hong Kong, after the protracted demonstrations in the city damaged investment sentiment.
With the protest heading towards the three-month mark, people are becoming numb to them, said Kevin Leung, executive director of investment strategy at Haitong International Securities.
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"No one knows what may happen in November or December. It is traditionally the peak season for IPOs. For companies that need to raised funds, it is time for them to get prepared for that," he said.
Additionally, for IPOs with smaller fundraising targets, below about US$500 million, the influence of the protests will be smaller than for those eyeing mega deals, he added.
Many of the 200 or so companies that had filed for IPO in Hong Kong had to put their plans on hold because they could not get a good price, according to analysts.
In July alone, the number of listings halved to 15, while the combined proceeds from IPOs plummeted by 57 per cent to US$1.7 billion. Three listings valued at a combined US$11.1 billion have been deferred since June, when the anti-extradition bill protests broke out in Hong Kong.
Among them was the planned US$9.8 billion IPO by brewer Anheuser-Busch InBev's Budweiser Asia unit. The company said it was unable to get the valuation it wanted.
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But a lot of entrepreneurs from the Chinese mainland are "still keen" to list in the Hong Kong market so that they can diversify their portfolio with assets offshore, denominated in the local currency, said William Xiang, a veteran investment banker based in Hong Kong, experienced in helping mainland technology firms go public.