Tencent-Backed Yeahka Refiles for Hong Kong IPO
The Chinese payment technology services provider, Yeahka Ltd. has refiled for an IPO in Hong Kong, following its first target to list in the city in 2019.
The Tencent Holdings Ltd. (OTC: TCEHY; HKEX: 0700) backed company has arranged Nomura, CLSA, and ABC International as sponsors on the offering, according to an application filed with the Hong Kong Stock Exchange on Sunday.
While the filing did not show the size or the timing of the offering, Yeahka was planning to raise $300 million in November, as reported by Bloomberg. At the time, the listing could have happened as soon as February, but the spread of the coronavirus has added complications across the world
The news comes as Hong Kong prepares for a busy week of IPO's, including two sizeable listings: Biotech firm Peijia Medical Ltd., which seeks $302 million, and the property management company, Central China New Life Ltd., which seeks to raise $279 million in the city this week. The two parties are both expected to begin trading on May 15.
With around 12% of the market share in 2018, Yeahka was China's second-largest non-bank independent QR code payment service provider, according to the company's filing in November. As of June 2019, Yeahka had about 4.8 million active payment service customers.
In 2019, Yeahka more than doubled revenues to 2.26 billion yuan compared with 992.89 million yuan in the same period in 2018.
Now that fears are starting to ease down in the Hong Kong market, expect listings to heat up towards the end of the year. According to a report by the Deloitte China's National Public Offering Group last month, it projects Hong Kong to host around 160 IPOs, with the proceeds ranging from HKD$160 billion to HKD$220 billion for 2020.
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