Four Chinese companies launched initial public offerings (IPOs) in Hong Kong on Monday, seeking to collectively raise up to HK$14 billion, despite signs of a softening market in September. The offerings, which drew strong support from cornerstone investors, come as the Hong Kong stock market has experienced a slowdown in new listings following a robust start to the year.

Leading the group is RoboTechnik, an automated equipment manufacturer based in Suzhou, Jiangsu province, aiming to raise as much as HK$5.18 billion. The company set its share price at a maximum of HK$436, marking a roughly 40 percent discount compared with its closing price on the Shenzhen stock exchange last Friday. RoboTechnik secured commitments from 16 cornerstone investors, including Singapore's Temasek and China’s E Fund Management, who agreed to take up about 35 percent of the shares on offer. The firm produces manufacturing equipment and integrated production lines specifically for the photovoltaic and silicon photonics sectors.

Shenzhen Kinwong Electronic, a maker of printed circuit boards, also sought to raise funds through its IPO, targeting HK$5.1 billion by offering over 72.9 million shares globally at up to HK$69.88 each. This price reflected a 42 percent discount relative to its recent closing share price on the Shanghai Stock Exchange. Kinwong attracted 14 cornerstone investors, among them Zhongji Innolight, a manufacturer of optical transceivers, and Kingboard Holdings’ subsidiary KHL. Together, these investors committed approximately US$310 million, equating to nearly 47 percent of the total fundraising. For the first half of 2022, Kinwong reported a 21.4 percent increase in revenue to 8.6 billion yuan (about HK$10 billion) but noted a 6.5 percent decline in net profit to 612 million yuan.

The other two companies to launch IPOs were Shanghai-based Red Avenue New Materials, targeting up to HK$3 billion, and Direct Drive Tech, an electric motor supplier aiming for around HK$1.08 billion.

Initial subscription data indicated a mixed reception, with only Direct Drive Tech — the smallest of the four IPOs — achieving full subscription in its retail tranche by mid-afternoon on Monday. The other three offerings remained under-subscribed at that time. All four companies are scheduled to begin trading on Hong Kong’s stock exchange next Tuesday.

The broader listing environment this month has shown volatility. Of the six new listings so far in September, only Excelland Robotics gained on its trading debut, surging 153 percent on September 9. By contrast, Transwarp Technology, which went public on Monday alongside the four new IPOs, saw its share price decline 9.18 percent to HK$44.50 at the close of trading. Other recent IPOs, including Shein, Longsys Electronics, Medcaptain Medical Technology, and MechMind Robotics, have experienced share price drops ranging from 18 to 45 percent since their debuts.

Overall, the influx of Chinese firms seeking listings in Hong Kong continues amid a recalibrating market environment, with cornerstone backing playing a key role in supporting offerings despite softer retail demand.