Hong Kong IPO boom at risk as cornerstone backers get cold feet, sources say

Cornerstone investors in Hong Kong's IPO market are reportedly becoming hesitant to participate in upcoming deals. This shift in sentiment is attributed to a significant portion of recent listings performing poorly, with over 60% of third-quarter new listings trading below their initial prices. Consequently, some companies that planned to list this month have been forced to postpone their offerings. Cornerstone investors, who typically secure guaranteed allocations in exchange for a six-month lock-up period, are now re-evaluating their commitment to new IPOs. This developing trend suggests a potential cooling of the previously booming Hong Kong IPO market.