(Bloomberg) -- China’s SF Holding Ltd.’s shares are set to debut in Hong Kong on Wednesday, in what is expected to be the city’s final test for major listings this year.
In gray-market trading Tuesday, China’s biggest express-delivery firm jumped as much as 5.5% from its issue price of HK$34.30, which stood in the middle of the marketed range, before erasing gains. The HK$5.83 billion ($749 million) listing is Hong Kong’s second largest this year after appliance maker Midea Group Co.’s $4.6 billion debut.
The deal came as sentiment shifted on Chinese equities following Beijing’s stimulus blitz in late September. Investor mood, however, has started souring again amid disappointment over further fiscal measures and Donald Trump’s US election win this month, which rekindled concerns on trade tensions.
SF’s listing drew about $205 million from cornerstone investors, which agreed to hold shares for at least six months in exchange for guaranteed allocation. Backing for the initial public offering also came from entities tied to Hong Kong property investors.
The issue price stood at roughly a 25% discount to its share price in mainland China, before SF started taking orders from investors. Other listings expected in the coming year include those of condiment maker Foshan Haitian Flavouring & Food Co. and drugmaker Jiangsu Hengrui Pharmaceuticals Co., Bloomberg News reported.
Goldman Sachs Group Inc., Huatai Securities Co. and JPMorgan Chase & Co. are joint sponsors of the offering.
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