Companies seeking to list in Hong Kong used to regularly solicit backing from local property tycoons, revered as savvy investors in a city whose wealth was built on real estate. The practice waned in recent years as Chinese state-owned enterprises began taking more prominent roles — Hong Kong-based billionaires haven’t been cornerstone investors in any major offering priced in the city after the start of 2022, according to data compiled by Bloomberg.
Property tycoons are lending their support to the Hong Kong IPO market for the first time in years, a move that could help fan the flames of a nascent recovery.
Billionaire Robert Ng’s Sino Land Co is one of the largest cornerstone investors in the US$793 million Hong Kong listing from courier service SF Holding Co. that kicked off this week. An investment vehicle backed by the family of New World Development Co. Chairman Henry Cheng is also among the 10 parties that committed to buy stock in the offering in return for guaranteed allocation.
