China’s Neusoft Xikang becomes 3rd HK IPO this week to price shares at low end – source

By Scott Murdoch

SYDNEY (Reuters) -China’s Neusoft Xikang will price its shares at HK$4.76 (61 U.S. cents) each to raise $81.5 million in an Hong Kong initial public offering (IPO), said a person with direct knowledge of the matter.

The person declined to be identified because the information is confidential. Neusoft Xikang did not respond to a request for comment.

The Chinese cloud hospital platform planned to sell 133.8 million shares with an indicative price range of HK$4.76 to HK$5.91 each, its prospectus showed.

The pricing would make the deal the third Hong Kong IPO this week to price at the bottom of its marketing range, indicating that while there were more deals than usual, sentiment toward new share sales remains weak.

Chinese artificial intelligence startup Beijing Fourth Paradigm – which is on the U.S. Entity List of blacklisted firms – raised $131 million after pricing its shares at the low end of its marketing range, a source told Reuters on Thursday.

Earlier in the week, Tuhu Car raised $145 million with its share price finalised at HK$28, the bottom of its indicative range.

Beijing Fourth Paradigm and Tuhu Car declined to comment on their final pricing.

(Reporting by Scott Murdoch; Editing by Tom Hogue and Christopher Cushing)