HONG KONG - Consumer lender Home Credit is poised to offer the biggest test of Hong Kong’s capital markets since China’s Alibaba delayed plans for a $15 billion listing last month because of the political turmoil engulfing the city.
Hong Kong’s markets have been weakened by frequently violent pro-democracy protests and political turmoil over the past three months, slashing a 12% gain for the year to June on the blue-chip Hang Seng Index .HIS to a 3% positive performance by Monday. By contrast the benchmark U.S. S&P 500 .SPI is up 18.8% so far this year.
That deal delay came soon after brewing giant AB InBev pulled the $10 billion IPO of its Asia-Pacific operations, citing market conditions. Hillhouse-backed Topsports International Holdings begins informal investor meetings this week according to a term sheet reviewed by Reuters, ahead of a float expected to seek about $1 billion.So far this year, companies have raised $10.8 billion in new listings in Hong Kong - well short of the $16.5 billion raised between Shanghai and Shenzhen, and the $38.4 billion raised in New York.
Home Credit’s week-long informal investor meetings were scheduled to take in cities including Hong Kong, Singapore and London before finishing in New York on Wednesday, according to sources with knowledge of the plans.