Two overseas companies eye Hong Kong IPOs

The first large foreign IPOs since 2012.

Japanese digital services firm Digital Garage Group and Italian chemical producer M&G Chemicals plan to raise a combined US$600 million in their IPOs. Digital Garage intends to raise US$100 million while M&G is looking at US$500 million.

Analysts said the two planned IPOs are the first sizeable ones by foreign companies in Hong Kong since Japanese pachinko-parlor operator Dynam Japan Holdings raised US$202 million ahead of its August 2012 listing.

They noted the planned listings could give a shot to Hong Kong’s IPO market, which has been almost stagnant for months, and also to the Hong Kong stock exchange’s goal of attracting more foreign companies.

Digital Garage has already submitted an application to the Hong Kong stock exchange to list its online payment business, econtext Asia, Ltd.