A new wave of Chinese tech companies are rushing to sell their shares through initial public offerings (IPO), with at least one listing reportedly attracting interest from the three wealthiest people in greater China. But pricey valuations are proving to be a hard sell to other investors against a backdrop of escalating trade tensions.
So far this year, 26 Chinese tech companies have offered to sell $8.5 billion worth of new shares, accounting for 9% of global IPO volumes, according to Dealogic. That includes smartphone maker Xiaomi, which intends to raise up to $6.1 billion through a Hong Kong share sale that’s expected to be the world’s largest IPO in the past two years. Meituan-Dianping, a food delivery and online services provider, has also filed for a Hong Kong listing later this year. The Beijing-based company is said to be targeting a $60 billion valuation.