Hong Kong IPO sponsors spread too thin

Author: | Published: 14 Jun 2011

Questions are being raised as to the adequacy of due diligence carried out by over-stretched sponsors on Hong Kong initial public offerings (IPO).

Herbert Smith financial services partner, Tim Mak said market regulators were concerned that IPO sponsors were spreading themselves too thinly, with deal teams managing many transactions at the same time.

“A lot of the large PRC state-owned enterprises (SOE) and conglomerates who want to get listed in Hong Kong, have now done so,” he said. This has led to increasing...