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Business Times
03-08-2025
- Business
- Business Times
South-East Asian firms test Hong Kong waters amid IPO surge
[SINGAPORE] South-east Asian companies have mostly sat out Hong Kong's 2025 listing boom , but a cautious revival may be under way with four more initial public offerings (IPOs) from the region in the pipeline, according to the Hong Kong Stock Exchange (HKEX). Johnson Chui, HKEX's head of issuer services, told The Business Times that four South-east Asian companies are preparing to list, though he did not name them. If these plans proceed, they would mark the highest annual number of South-east Asian IPOs in Hong Kong since 2020, signalling a slow rebound after a prolonged slump. The pandemic and unfavourable macroeconomic conditions drove a steep decline in regional interest, with just three South-east Asian IPOs recorded between 2021 and 2024, compared with more than 65 in the five years prior. The new listings could include that of Singapore-headquartered apparel retailer Shein. In July, it filed for an IPO on HKEX after its plans to debut in New York and London were stymied by regulatory pressures . Chui told BT that the exchange continues to seek opportunities from the south. 'HKEX is deeply committed to strengthening ties with Asean markets,' he said, noting that the bourse frequently conducts roadshows in the region. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up In the first half of 2025, three regional companies listed on HKEX: Indonesia-based Nanshan Aluminium, Singapore biotech firm Mirxes , and Thai coconut water-maker IFBH . They accounted for 7 per cent of the bourse's 43 IPOs so far this year, as overall activity rebounded sharply. In H1, IPOs and cross-listings on HKEX totalled 210 deals, raising US$49.2 billion – more than nine times the US$5.3 billion raised a year ago, based on data from S&P Global Market Intelligence. The 43 IPOs in H1 2025 marked a sharp jump from the 29 in the same period in 2024, and the 27 in H1 2023. 'Most of the success we've seen in the capital markets in Hong Kong has been from Chinese companies,' said Jon Withaar, head of Asia special situations at Pictet Asset Management. Much of HKEX's fundraising surge has stemmed from the 175 dual-listed companies that also trade on the mainland's A-shares market. For these firms, Hong Kong's deep capital markets and currency fungibility provide greater flexibility. Mainland markets The prospect of expanding into the Chinese market has prompted some South-east Asian companies to make the leap. Listing on HKEX could lead to greater recognition among investors across Greater China, or the leverage of brand familiarity for fundraising. Thailand's IFBH, whose coconut water brand IF commands a significant market share in China, cited desires to grow its business in the wider region following its Hong Kong debut in June. ' Most of the success we've seen in the capital markets in Hong Kong has been from Chinese companies. ' — Jon Withaar, head of Asia special situations at Pictet Asset Management In addition, Hong Kong's efforts to attract listings from key sectors could draw the attention of Greater China companies. Specialist technology firms in China have flocked to HKEX as the bourse offered pathways to lessen compliance burdens for applications within the sector. This may be why cancer diagnostics startup Mirxes chose HKEX over the Singapore Exchange (SGX) for its IPO in May, citing better valuations and a more savvy investor pool. This is despite the company's links with Singapore government bodies such as the Agency for Science, Technology and Research, and the Economic Development Board. Homecoming bias Admittedly, South-east Asia's own IPO market has been relatively quiet, with fundraising reaching a decade-long low in 2024 . Fresh listings in H1 2025 have also underperformed compared to the year before, a Deloitte report noted. Local exchanges have remained more attractive than HKEX for new listings, with fundraising flexibility and policy incentives laying the foundations for domestic players to access funds. 'Major Asean members have their own currencies and domestic stock markets to fund business growth,' a Bloomberg Intelligence report noted in July. 'The bias remains for South-east Asian companies to list on their local exchanges in 'homecomings',' said Pictet's Withaar, pointing out that government-linked investment companies and sovereign wealth funds in countries such as Malaysia, Indonesia and Singapore often support large listings in the region. Such government involvement is expected to persist in South-east Asia's capital markets. 'Companies increasingly favour local exchanges over international ones due to regulatory support and growing domestic investor interest,' Stephen Bates, partner and head of deal advisory at KPMG in Singapore, told BT last month. As a result, little of Hong Kong's listing activity in the last few years has come from South-east Asia, Withaar noted. 'These are markets for Chinese and Hong Kong investors, who can understand Chinese businesses much more than (those) in Thailand, Vietnam or Malaysia.' Cross-listings Notably, HKEX may still find additional reach in dual-primary or secondary-listed companies which already trade on Asean exchanges. The bourse may already have signalled a strategic shift, which HKEX chief executive Bonnie Chan hinted at in a June interview: 'I am now beginning to realise that our sweet spot may not be private companies.' 'We're now more focused on companies which are actually already listed on another market, but might have outgrown their domestic market,' she added. Since 2022, international issuers have been included in HKEX's Stock Connect programme, which allows mainland Chinese investors to trade and settle shares listed on Hong Kong boards. Access to these investors may be why companies such as Malaysia-listed Capital A, the parent company of low-cost carrier AirAsia, is now seeking a secondary listing on the Hong Kong bourse. ' I am now beginning to realise that our sweet spot may not be private companies. We're now more focused on companies which are actually already listed on another market, but might have outgrown their domestic market. ' — Bonnie Chan, HKEX chief executive As part of efforts to woo more South-east Asian firms, HKEX has included several exchanges from the region in its list of recognised stock exchanges – allowing companies already listed on these boards to pursue secondary listings in Hong Kong without being subject to additional regulatory requirements. The bourse added the Indonesia Stock Exchange to this list in 2023, and the Stock Exchange of Thailand in March this year. The list already includes SGX, but not Malaysia's or Vietnam's main stock exchanges. Seventeen companies from South-east Asia –- including 16 from Singapore and one from Malaysia – are currently trading on both HKEX and their domestic bourses, Bloomberg data indicated. Even so, access to additional fundraising is far from a given for South-east Asian companies. SGX-listed real estate player LHN discovered this as it voluntarily delisted from the Hong Kong bourse in July, citing compliance costs and low trading volumes. Liquidity concerns, the company's board said, had limited its opportunities to conduct secondary equity fundraising on HKEX. Pictet's Withaar also warned that dealmaking in Hong Kong still suffers from deep cyclicality, where listing booms come and go. 'Just 18 months ago, there were miniscule levels of activity in the Hong Kong capital markets,' he said. 'This is unlike the US, which has a very deep and liquid market. There is always a steady stream of capital markets transactions.' When it comes to overseas listings, Wall Street exchanges Nasdaq and the New York Stock Exchange remain the gold standard for foreign companies due to better liquidity and valuations, he added. Compared to the three South-east Asian listings on HKEX, six regional companies have already gone public on Nasdaq in 2025, all of which are headquartered in Singapore.
Economic Times
30-07-2025
- Business
- Economic Times
Can Singapore's stock exchange compete with Hong Kong's IPO market?
IFBH and Mirxes chose Hong Kong over Singapore for IPOs, highlighting the valuation and liquidity strengths of the Hong Kong stock exchange over the Singapore Exchange (SGX) Singapore faces increasing challenges in attracting initial public offerings (IPOs), as more companies choose Hong Kong for its market depth and valuation potential. IFBH, a Singapore-incorporated Thai company and the world's second-largest coconut water bottler, recently launched a HK$1.16 billion (US$147 million) IPO on the Hong Kong stock exchange. The company initially planned to list in Singapore but shifted to Hong Kong, citing strong connections to mainland China, its key IFBH listing follows the successful debut of Mirxes, a Singapore-based biotechnology firm that raised HK$1.09 billion in its May IPO, with its share price rising 28.8 per cent on the first day. Both companies underscore Hong Kong's IPO market advantage. Also read: FWD Group launches US$512 million Hong Kong IPO, targeting HK$48.3 billion valuation According to the London Stock Exchange Group, Hong Kong raised US$13.2 billion from 38 IPOs this year, compared with a single US$4.5 million listing on the Singapore Exchange (SGX). In 2023, Hong Kong saw 67 IPOs raising US$11.3 billion, while Singapore posted four listings totaling US$34.2 million. Despite these trends, analysts and officials indicate that Singapore is taking active steps to boost its IPO market appeal. The Singapore government recently introduced multiple incentives, including a 20 per cent tax break and incentives for funds to invest in local equities.'That was a good shot in the arm to provide added confidence for issuers to consider Singapore,' said Anuruk Karoonyavanich, global head of equity capital markets at DBS. Liquidity remains a significant constraint for SGX. Singapore's market capitalization is approximately US$488 billion, with a daily trading volume near US$1.1 billion, compared with Hong Kong's US$6.5 trillion market capitalization and US$30 billion daily read: Hong Kong's sixfold jump in share sales drives boom year in Asia'If you look at Singapore-listed companies, over 60 or 70 per cent are controlled by Temasek or GIC,' said Frank Bi, head of corporate transactions at Ashurst in Hong Kong. This level of state involvement may discourage a market-driven IPO current disparities, analysts see potential for SGX. Mirxes is planning a dual listing on SGX's main board. China Medical System, listed in Hong Kong, also announced plans for a secondary listing on telecom operator Nippon Telegraph and Telephone recently filed to list a data center REIT on SGX, potentially raising US$1 billion, the largest listing on the exchange in four emphasized that companies with regional strategies, particularly those focused on Southeast Asia, are likely to consider Singapore as a viable listing venue. He pointed to increasing capital inflows from family offices and high-net-worth individuals as a potential driver of market Stanley projected Singapore's market capitalization could double by 2030, driven by increased returns on equity, a strong tech startup ecosystem, and proactive government reforms. Also read: China fashion retailer Shein to file confidentially for Hong Kong IPO in rare move, sources say 'The trend is that everybody wants to raise international capital and grow regionally,' Karoonyavanich said. In that context, both Hong Kong and Singapore are positioned to benefit within the Asia-Pacific region.
Yahoo
30-06-2025
- Business
- Yahoo
A coconut-water maker's stock soared at its IPO, defying China's consumer spending slump
Thai coconut-maker IFBH's stock surged 67% on its Hong Kong debut. IFBH's IF coconut water has one-third of the market share in China. Coconut water is a fast-growing market in China as consumers are increasingly health-conscious. Stock of a China-focused coconut-water beverage surged on its first day of trade, showing that niche consumer brands can still capture attention and money in a sluggish Chinese economy. On Monday, shares of Thai coconut water maker IFBH leaped as much as 67% on their debut on the Hong Kong Stock Exchange. IFBH's initial public offering was priced at 27.80 Hong Kong dollars a share, or $3.54. The shares surged as much as HK$46.50 minutes shortly the opening bell and closed at HK$39.50. Investor enthusiasm for IFBH was clear even before trading began. The offering was 2,682 times oversubscribed. Cornerstone investors included UBS Asset Management and ICBC Wealth Management. The strong debut comes despite a broader slump in Chinese consumer spending that has hit luxury sales in the country. However, some sectors, like sports and lifestyle, are still raking in the big bucks. IFBH, which makes the IF range of coconut water, has been the top coconut water brand in China for five straight years, according to research firm Baiguan in a post earlier this month. In 2023, IF held a one-third share of the market. Once seen as a niche hydration product for athletes, coconut water is now a fast-growing category. It's being served in mainstream dining venues like restaurants and cafés, Jason Yu, the managing director for Greater China at the UK-based consumer research group Kantar Worldpanel, told Business Insider. "Coconut water is seen to have multiple benefits that are good for consumers and for sports without being sugary," Yu said. "Like yogurt drinks, it's seen as a good alternative to soda and other sweetened beverages when dining. Coconut water also pairs very well with hot and spicy food," he added. Baiguan analyst Nina Chen credited IFBH's success in part to the popularity of Luckin Coffee's coconut latte and brand collaborations, including tie-ups with Labubu-maker Pop Mart and celebrity endorsements. "IF exploited a unique market gap: high Chinese demand for a product (coconut water) the country couldn't easily produce," wrote Chen. Driven by rising demand in China, IFBH revenue hit $157.6 million in 2024, up 80% from the year before, according to its IPO prospectus. The company plans to use the proceeds to invest in product development, marketing, and expansion into new markets, including the Americas and Australia. Despite the intense competition in the sector, Yu said the market for coconut water is likely to continue growing as it's still an emerging market. "Chinese consumers today are more than ever willing to spend on their health and well-being," he said. Read the original article on Business Insider
Business Insider
30-06-2025
- Business
- Business Insider
A coconut-water maker's stock soared at its IPO, defying China's consumer spending slump
Stock of a China -focused coconut-water beverage surged on its first day of trade, showing that niche consumer brands can still capture attention and money in a sluggish Chinese economy. On Monday, shares of Thai coconut water maker IFBH leaped as much as 67% on their debut on the Hong Kong Stock Exchange. IFBH's initial public offering was priced at 27.80 Hong Kong dollars a share, or $3.54. The shares surged as much as HK$46.50 minutes shortly the opening bell and closed at HK$39.50. Investor enthusiasm for IFBH was clear even before trading began. The offering was 2,682 times oversubscribed. Cornerstone investors included UBS Asset Management and ICBC Wealth Management. The strong debut comes despite a broader slump in Chinese consumer spending that has hit luxury sales in the country. However, some sectors, like sports and lifestyle, are still raking in the big bucks. IFBH, which makes the IF range of coconut water, has been the top coconut water brand in China for five straight years, according to research firm Baiguan in a post earlier this month. In 2023, IF held a one-third share of the market. Once seen as a niche hydration product for athletes, coconut water is now a fast-growing category. It's being served in mainstream dining venues like restaurants and cafés, Jason Yu, the managing director for Greater China at the UK-based consumer research group Kantar Worldpanel, told Business Insider. "Coconut water is seen to have multiple benefits that are good for consumers and for sports without being sugary," Yu said. "Like yogurt drinks, it's seen as a good alternative to soda and other sweetened beverages when dining. Coconut water also pairs very well with hot and spicy food," he added. Baiguan analyst Nina Chen credited IFBH's success in part to the popularity of Luckin Coffee's coconut latte and brand collaborations, including tie-ups with Labubu-maker Pop Mart and celebrity endorsements. "IF exploited a unique market gap: high Chinese demand for a product (coconut water) the country couldn't easily produce," wrote Chen. Driven by rising demand in China, IFBH revenue hit $157.6 million in 2024, up 80% from the year before, according to its IPO prospectus. The company plans to use the proceeds to invest in product development, marketing, and expansion into new markets, including the Americas and Australia. Despite the intense competition in the sector, Yu said the market for coconut water is likely to continue growing as it's still an emerging market. "Chinese consumers today are more than ever willing to spend on their health and well-being," he said.
Forbes
30-06-2025
- Business
- Forbes
Thailand's Coconut Water Giant IFBH Soars In Hong Kong IPO Debut
IFBH, the Thai company behind the IF-branded bottled coconut water, started trading in Hong Kong on June 30, 2025. Shanshan Kao/Forbes Asia IFBH, the Thai company behind China's largest coconut water brand IF, saw its shares jump 42% in its Hong Kong stock market debut Monday, boasting a market cap of $1.3 billion. IFBH ended its first day trading at HK$39.5, up from its HK$27.8 per share set for the initial public offering. The company, a subsidiary of Bangkok-based General Beverage, raised HK$1.16 billion ($145 million) from the sale of 41.7 million shares at the top end of a marketed range of HK$25.3 to HK$27.8. The stock surge gave Pongsakorn Pongsak, IFBH's founder, CEO and largest shareholder, a net worth of $807 million, propelling the 45-year-old into the ranks of Thailand's wealthiest people. Forbes estimates Pongsakorn's wealth based on his 60% stake in IFBH, which he holds directly and through General Beverage. Pongsakorn holds a 91% stake in General Beverage, which in turn owns 60% in IFBH. IFBH's IPO has attracted a roster of big-name cornerstone investors, including Black Dragon, an investment fund backed by Soopakij Chearavanont, the chairman of Thai agriculture-to-telecoms conglomerate Charoen Pokphand (CP) Group and the eldest son of billionaire Dhanin Chearavanont; HongShan's HCEP Management; Jain Global, the U.S. hedge fund founded by former Millennium co-chief investment officer Bobby Jain; U.S. trading giant Jane Street; and UBS Asset Management. The company's pre-IPO investors include Singaporean sovereign wealth fund Temasek. IFBH said it will use the IPO proceeds to bolster fulfillment capabilities, strengthen its presence in mainland China and expand operations in Australia, the Americas and Southeast Asia. 'Over the years, we have grown into one of the leading ready-to-drink natural coconut water brands in Asia,' Pongsakorn said at the listing ceremony in Hong Kong on Monday. 'Looking ahead, we are excited to continue investing in innovation, strengthening our sourcing capabilities and growing our brand sustainability.' Pongsakorn Pongsak (right), founder and CEO of IFBH, attends the company's listing ceremony at Hong Kong's stock exchange on June 30, 2025. Shanshan Kao/Forbes Asia IFBH is best known for its IF-branded bottled coconut water—a clear and slightly sweet beverage derived from coconuts that some people believe is good for health. The company posted $362 million in retail sales value in China last year, making it the country's largest coconut water producer, according to its prospectus, which cited China Insights Industry Consultancy. With a global retail sales value of $374 million in 2024, IFBH said it's also the world's second-largest coconut water company after New York-based Vita Coco. The company generated more than 92% of its revenue from mainland China in 2024, with 4.6% from Hong Kong and the rest from places including Australia, Cambodia, Canada, Kuwait, Malaysia, Singapore, Taiwan, Thailand and the U.S. Its sales surged 80% year-on-year to $157.6 million in 2024, while net profit nearly doubled to $33.3 million during the same period. IFBH attributed the growth to the increased sales volume in mainland China. Despite its business scale, IFBH has a lean team of 46 staff, thanks to its 'asset-light' business model. IFBH outsources its manufacturing and distribution to parent General Beverage and other third parties, freeing the company to focus on marketing and R&D. Pongsakorn founded General Beverage in 2011 and launched the IF-branded coconut water two years later. He started selling the beverage in Hong Kong in 2015, followed by mainland China in 2017. Pongsakorn has continued to innovate over the years, launching plant-based snacks such as coconut crispy rolls, as well as products that cater to local preferences, like coconut black tea in China. In late 2022, he formed IFBH to run General Beverage's operations outside of Thailand. IFBH's listing comes amid Hong Kong's IPO market revival. The city is on track to reclaim its crown as the world's top listing venue in 2025 following a five-year dry spell, driven by renewed investor interest for Chinese tech stocks following the rise of AI startup DeepSeek and U.S.-China tensions that are prompting more Chinese companies to pivot toward Hong Kong listings. Since the beginning of 2025 through June 26, there were 41 listings in Hong Kong raising a total of more than HK$104 billion, according to data from the Hong Kong Exchanges and Clearing. Among the companies going public in the city includes gold jeweler Zhou Liu Fu Jewellery, whose shares soared nearly 70% over the first two trading days on Friday, catapulting its chairman into billionaire status. MORE FROM FORBES Forbes Chairman Of Chinese Gold Jeweler Zhou Liu Fu Becomes A Billionaire After Stock Surge By Zinnia Lee Forbes Billionaire Brothers' Chinese Bubble Tea Giant Mixue Surges In Hong Kong Debut By Zinnia Lee Forbes Ex-Baidu AI Scientist Becomes A Billionaire After Shares Of His Self-Driving Tech Startup Jump 16% By Zinnia Lee
