Battery materials producer Tianqi Lithium Corp just opened its books for what is set to be the city’s first billion-dollar deal this year while China Tourism Group Duty Free Corp may relaunch an offering of around $2 billion.
Along with several other mid- to large-sized deals in the pipeline, they are poised to revive a dormant market where firms raised a paltry $2.6 billion between January and June. That’s a 92% slump from last year and the lowest sum for the same period since 2009.
The pick-up in upcoming listings speaks of an improving environment for valuations as the easing of virus-related curbs and Beijing’s dialling back on a corporate crackdown spur a world-beating rally in stocks in China and Hong Kong. Better clarity on rules for Chinese share offerings abroad could also “encourage more new listings” in Hong Kong, Charles Zhou, an analyst at Credit Suisse Group AG, wrote in a note last month.
