(Yicai) Oct. 27 -- The proceeds from public offerings on the Hong Kong Stock Exchange are expected to reach a new record high this year, even though the listing boom has recently faded, according to industry insiders.

Hong Kong’s public offering market was mainly driven by dual listings on the Chinese mainland and the special administrative region and hard technology projects in the first three quarters of the year, Ronald Wan, chief executive officer of Partners Capital International, told Yicai, adding that there is a gap in new listing applications, with some projects delayed or invalidated.

Wan estimated the annual financing amount on the HKEX could still reach HKD480 billion to HKD500 billion (USD61.2 billion to USD63.7 billion) this year.

The pace of public offerings in Hong Kong has slowed down recently, Yu Fenghui, a consultant at the Top 100 Hong Kong Listed Companies Research Center, told Yicai. Eight of the 14 new stocks that have listed since September fell below the issue price on the first trading day, with Medcaptain Medical Technology dropping nearly 43 percent, he noted.

Meanwhile, the Hong Kong Securities and Futures Commission has strengthened law enforcement and is paying closer attention to compliance reviews of small- and medium-sized issuances, Yu said.

The SFC has recently suspended trading in Cloudbreak Pharma, Tianju Dihe Suzhou Technology, and Sichuan Baicha Baidao Industrial and frozen assets worth over HKD4.6 billion (USD586.3 million) of two syndicates suspected of involvement in fraudulent schemes related to the initial public offerings of the three companies and creating false share demand. This was the largest seizure of its kind in SFC history.

There have been significant differences in subscriptions by retail and cornerstone investors in the IPO of Suzhou Dongshan Precision Manufacturing, the world’s third-largest printed circuit board firm by revenue last year, also known as DSBJ, as of the investor subscription deadline on Oct. 23.

While the public offering for retail investors had insufficient subscription of only 0.39 times, the total subscription amount of the 20 cornerstone investors was USD680 million, accounting for about half of the global share offering.

DSBJ plans to issue nearly 11.38 million shares worth a total of HKD1.1 billion for its IPO, based on the highest issue price of HKD93.80 (USD11.95) apiece.

DSBJ's situation reflects retail investors’ cautious view of current pricing and short-term profit margins and institutional investors’ focus on long-term business logic, as they operate on different investment horizons and pricing dimensions, Yu explained.

On Oct. 21, Jiangsu Slender West Lake Culture and Tourism announced it had decided to delay its global offering and listing on the HKEX main board after considering multiple factors, including current market conditions. The company, which planned to go public on Oct. 23, said it remains committed to completing its listing.

Editor: Futura Costaglione