Zhang Yu

JeniZhang13@163.com

TOTAL proceeds raised by Chinese technology, media and communications (TMT) firms from their initial public offerings (IPOs) tripled from 2017 to reach about 225.9 billion yuan (US$33.66 billion) in 2018, according to accounting firm PwC.

According to a report by the firm released Friday, the number of Chinese TMT IPOs rose significantly to 40 in the second half of 2018, with combined proceeds amounting to 168.1 billion yuan.

China Tower Corp., Xiaomi Corp. and Meituan Dianping completed the three largest Chinese TMT IPOs in terms of proceeds in the second half of 2018.

Thirty-one mainland TMT companies chose to list on the Hong Kong or overseas markets in the second half of 2018, with their proceeds accounting for 94 percent of the total. Two TMT companies were listed on the small and medium-sized enterprise (SME) board of the Shenzhen Stock Exchange, four on the main board and three on the ChiNext board of the Shenzhen exchange.

Among all 40 TMT firms listed in the second half of last year, 14 were in the hardware and equipment sector, while 26 were in the software and service sector.

Key financial data from the report showed that among the 31 TMT companies that launched IPOs in Hong Kong or overseas in the second half of 2018, 19 were in the red, making the average net profit of listed TMT firms fall into negative territory.

“The Chinese domestic IPO market further slowed down in 2018. The setup of the technology innovation board [in Shanghai] in 2019 will create a new financing platform for Chinese sci-tech innovation firms,” said Frank Cai, media leader of PwC’s China division.