Hong Kong: An ideal listing destination for Middle East companies

Dec 20, 2023 | Business

Hong Kong is an ideal listing destination for Middle East businesses, according to a new joint report by the Hong Kong Trade Development Council (HKTDC) and CCB International Capital Limited (CCB International). The report, which is released today, shows that many companies in the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA) see the city as their first choice when it comes to securing funding, building stronger ties with Asia (particularly China), and, ultimately, enjoying greater global recognition.^

In order to explore the potential for UAE and KSA companies to secure listings in Hong Kong, the HKTDC and CCB International renewed their collaboration [1] to deliver the new report – Hong Kong: An Ideal Overseas Listing Venue for Middle East Companies. This led them to share a series of insights from in-depth interviews with UAE and KSA industry experts and practitioners as to Hong Kong‘s suitability as a listing destination for Middle East companies. The research, which was conducted from June to October this year, concluded that several Middle East business sectors in particular – Energy and Renewable Energy, Healthcare and High-tech, Infrastructure, and Finance – had the most to benefit from a Hong Kong listing.

Commenting on the significance of the findings, Irina Fan, Director of HKTDC Research, said: “For those Middle East companies looking to expand in the region, access to Hong Kong’s diverse pool of international institutional investors will clearly be of huge benefit. This is especially the case as many such investors have an in-depth understanding of both the pan-Asia and China-specific opportunities now emerging.” She adds, “Another plus point is the impressive breadth and depth of the Hong Kong stock market. The high level of trading activity that underpins this is a clear indication of just how robust the city’s capital market has proven over the long-term.”

Michelle Pan, Head of Corporate Finance & Capital Market Services at CCB International, said: “Following the visits of President Xi and HKSAR Chief Executive John Lee to the Middle East over the past two years, the Hong Kong capital market has begun exploring opportunities for collaboration between Middle East companies and the Hong Kong financial markets. In this context, this all-rounded research paper has been developed to explain why Hong Kong, with its unique attributes, is an ideal listing and fund raising destination for Middle East enterprises. The paper provides a comprehensive analysis of the benefits of listing in Hong Kong, including access to a deep pool of capital, a world-class regulatory framework, a vibrant and dynamic business environment, and a gateway to the vast Chinese market.”

Middle East: Looking at opportunities in new markets

Middle East stock exchanges have witnessed record-breaking initial public offerings (IPOs) in recent years, with bourses in KSA and UAE all ranking among the world’s top 10 in 2022 in terms of IPO funds raised. The opportunities stemming from overseas listings, primary, dual-primary and secondary included, however, have yet to be fully exploited.

At present, many UAE and KSA companies are actively looking at opportunities in new markets and seeking funding via equity markets as they look to deliver on their global expansion plans, many of which align with the region’s commitment to economic diversification as it looks to move on from its traditional dependence on its oil and gas resources. A clear synergy, however, has become apparent between the region and fast-growing Asia, something seen as offering tremendous opportunities for many UAE and KSA businesses as they look to make good on their economic diversification aspirations.

For many UAE and KSA companies, pursuing an overseas listing is not only a way of financing their overseas expansion projects, but also an effective marketing channel as they look to enhance their global recognition and improve their visibility and credibility among clients, institutions and the investing public in a number of target markets.

Hong Kong advantages: location, rule of law, impressive market breadth and depth, global investor base

During the course of the research, interviews with a number of experts highlighted the unique benefits on offer to Middle East companies that look to list in Hong Kong, one of the world’s most highly regarded financial centres. Strategically located at the gateway to many of Asia’s major markets – most notably mainland China and the ASEAN bloc – Hong Kong has considerable appeal for UAE and KSA companies. Most notably, a Hong Kong listing will ensure such businesses can fully leverage the advantages of the city’s strategic location, while gaining access to its well-established networks and stable business environment and benefitting from its rule of law and its abundant talent pool, which is widely seen as capable of delivering the highest quality of professional service. The city’s unique advantages also extend to the absence of capital controls and a transparent, resilient Linked Exchange Rate System.

Hong Kong’s robust legal framework – something that Middle East companies value particularly highly – is a significant advantage and an essential part of its appeal as a listing destination. As the only common law jurisdiction within China, Hong Kong and its legal system has a proven track record of upholding the rule of law and of maintaining judicial transparency. This framework has long functioned as a guarantee of the fundamental rights of any global enterprise or investor looking to raise or allocate funds as part of a Hong Kong-based listing initiative.

In addition, Hong Kong’s stock market has long been renowned for its maturity, vibrancy and global connectivity, while its sizeable market capitalisation consistently sees it rank among the top 10 largest stock markets on a global basis. As to its diverse investor pool, according to the Securities and Futures Commission, overseas and Mainland China investors accounted for 64% of the asset and wealth management businesses in Hong Kong in 2022, with the majority of overseas investors coming from North America (23%), Australia, New Zealand and elsewhere in the Asia Pacific region (14%), all of which instilled substantial liquidity in the local equity market.

As to how Hong Kong can optimise its role as a premium listing hub for Middle East companies, the research emphasised the importance of strengthening and sustaining its connectivity with many Middle East countries, especially at the government and regulatory level.

Overall, building closer G2G relationships with many Middle East economies was seen as of paramount importance, with the countries’ respective governments seen as playing a significant role in steering the relevant business sectors. It was also recommended that a higher level of market promotion and investment education be undertaken with regard to many Middle East prospects as a means of nurturing and directing their interest in Hong Kong’s financial services resources.

^ The first research report focuses on the overall overseas listing regime of Hong Kong as well as Hong Kong as a listing destination for UAE companies, while the subsequent report on KSA companies listing in Hong Kong will be released in the first quarter of 2024.

[1] HKTDC and CCB International released a research report on “Hong Kong: The Most Popular Overseas Listing Venue for ASEAN Companies” on 27 May 2022.

Photo download: https://bit.ly/41r9Q2a

“Hong Kong’s substantial investor pool has unrivalled understanding of both the pan-Asia and China-specific opportunities now emerging, guaranteeing a level of insight that will be invaluable to any ambitious Middle East business.” Irina Fan, Director of HKTDC Research

“Listing in Hong Kong provides Middle East companies with a range of benefits, including access to a deep pool of capital, a world-class regulatory framework, a vibrant and dynamic business environment, and a gateway to the vast Chinese market. This makes Hong Kong an ideal destination for Middle East enterprises seeking to expand their global reach and access new opportunities.” Michelle Pan, Head of Corporate Finance & Capital Market Services, CCB International

Hong Kong is an ideal overseas listing destination for Middle East companies, according to a research report by the Hong Kong Trade Development Council (HKTDC) in collaboration with CCB International

References
HKTDC Research Portal: https://research.hktdc.com/en
“Hong Kong: An Ideal Overseas Listing Venue for Middle East Companies”: https://bit.ly/3RJWo6c

Media Enquiries
HKTDC’s Communications & Public Affairs Department:
Frankie Leung, Tel: (852) 2584 4298, Email: frankie.cy.leung@hktdc.org
Clayton Lauw, Tel: (852) 2584 4472, Email: clayton.y.lauw@hktdc.org

CCB International’s Corporate Finance & Capital Market Services:
Sam Siu, Tel: (852) 3911 8926, Email: samsiu@ccbintl.com

About HKTDC

The Hong Kong Trade Development Council (HKTDC) is a statutory body established in 1966 to promote, assist and develop Hong Kong’s trade. With 50 offices globally, including 13 in Mainland China, the HKTDC promotes Hong Kong as a two-way global investment and business hub. The HKTDC organises international exhibitions, conferences and business missions to create business opportunities for companies, particularly small and medium-sized enterprises (SMEs), in the mainland and international markets. The HKTDC also provides up-to-date market insights and product information via research reports and digital news channels. For more information, please visit: www.hktdc.com/aboutus. Follow us on Twitter @hktdc and LinkedIn

About CCB International

CCB International (Holdings) Limited and its subsidiaries (collectively “CCB International”) is a financial and investment services company owned by China Construction Bank Corporation (“CCB”). CCB International is committed to expanding its international platform. Backed by the CCB global network, its business covers key financial centres worldwide including Mainland China, Hong Kong, Singapore and London. CCB International offers a full range of products and services including sponsoring and underwriting, financial advisory, corporate mergers and acquisitions, restructuring, additional issuance and placement of shares, refinancing for listed companies, direct investment, asset management, securities brokerage, market research, investment consultancy and commodities business. The corporate finance and capital market services of CCB International have assisted hundreds of companies in raising over HK$5 trillion from the global capital market. For more information, please visit: https://www.ccbintl.com.hk/English/company.html

Disclaimer: The information contained herein merely reflects the author’s own beliefs about the country concerned and the relevant economic situation. This information does not constitute or form part of any offer, solicitation or invitation to subscribe or purchase any securities. CCB International and the HKTDC do not guarantee, represent and warrant that all or any part of this information is reliable, accurate or complete.

If this document has been distributed by electronic transmission, then such transmission cannot be guaranteed to be secure or error-free as information could be intercepted, corrupted, lost, destroyed, arrive late or incomplete, or contain viruses. CCB International and the HKTDC, therefore, do not accept liability for any errors or omissions in the contents of this document, which may arise as a result of electronic transmission.


Topic: Press release summary

Ideal Chemi Plast of India Commences Construction of New Coating Resins Production Facility

May 19, 2022 | Business

The New Facility will Triple Ideal Chemi Plast’s Production Capacity, Positioning it to Respond to Demand in the Fast-Growing Economy’s Coating Resins Market

TOKYO, JAPAN – WEBWIRE –



DIC Corporation announced that its wholly owned subsidiary, Ideal Chemi Plast Private Limited, based in the state of Maharashtra, India, has commenced construction of a new coating resins production facility in the state’s Supa industrial area. The new greenfield project will increase Ideal Chemi Plast’s production capacity for these resins, enabling it to keep pace with rising demand in India.


DIC has formulated a strategy for expanding the DIC Group’s presence in coating resins markets across Asia. The Indian market, a key target of this strategy, is projected to see annual growth in excess of 9 percent. With the aim of capturing local demand, in April 2019 DIC acquired Ideal Chemi Plast, having determined that fusing its ability to develop high-end coating resins with the Indian company’s extensive sales channels, customer base, grasp of user needs, and supply chain would swiftly elevate its market position in India. With its existing coating resins production facility operating at full capacity ever since the acquisition, underpinned healthy demand, Ideal Chemi Plast recognized the need to swiftly augment capacity and purchased a site for a new facility in March 2021. Construction began in April this year.


The new facility, which is expected to begin operating in July 2023, will triple Ideal Chemi Plast’s production capacity. Reactors will also allow local production of new environment-friendly products and products for the global market developed at DIC’s Polymer Technical Center Asia Pacific in Thailand. To ensure it operates in a manner that does not harm the environment, the facility will install a Zero Liquid Discharge system, enabling it to treat all wastewater internally to produce clean water suitable for industrial use. This new facility also focuses on carbon footprint reduction by selecting natural gas as fuel, energy efficient machineries with good engineering practice and better safety standards.


Profile of new facility


Location: Supa industrial area, Ahmednagar district, Maharashtra, India


Site area: 48,500 m2


Principal products: Coating resins (acrylic resins, polyester resins, alkyd resins, others)


Applications: Industrial (automotive refinish coatings, coil coatings, others)


Start of construction: April 2022


Start of operations: July 2023 (scheduled)


Looking ahead, the DIC Group will continue working to strengthen its presence in the Indian coating resins market by further boosting both its production capacity and the range of products it offers, thereby improving value provided to local customers and locking in persistently robust demand. In line with the regional strategy set forth in its DIC Vision 2030 long-term management plan, which calls for building in growth by expanding its production bases in South Asia, the Group will also step up marketing efforts by subsidiary DIC South Asia Private Limited, which oversees sales of DIC products in the western part of the region, and works to bolster South Asia’s role as a base for exporting coating resins to the Middle East and Africa.


About Sun Chemical

Sun Chemical, a member of the DIC Group, is a leading producer of packaging and graphic solutions, color and display technologies, functional products, electronic materials, and products for the automotive and healthcare industries. Together with DIC, Sun Chemical is continuously working to promote and develop sustainable solutions to exceed customer expectations and better the world around us. With combined annual sales of more than $8.5 billion and 22,000+ employees worldwide, the DIC Group companies support a diverse collection of global customers.


Sun Chemical Corporation is a subsidiary of Sun Chemical Group Coöperatief U.A., the Netherlands, and is headquartered in Parsippany, New Jersey, U.S.A. For more information, please visit our website at www.sunchemical.com

Ideal Homes Portugal Earns Multiple Awards In 2021 European Property Awards

Nov 29, 2021 | Business

The Portuguese Real Estate company was acknowledged in 5 different categories including Real Estate Agency Single Office for Portugal and Real Estate Agency Marketing for Portugal

Ideal Homes Portugal is delighted to announce that it has been honored in five different categories of the 2021 European Property Awards. The awards received were in the following categories: Real Estate Agency Single Office for Portugal, Real Estate Agency Marketing for Portugal, Real Estate Lettings Agency for Portugal, Real Estate Agent for Portugal -Sasha Sharlpey, and Real Estate Agent for Portugal – Chris White.This year, the names of which awardees emerged 5* winners in the various categories will be announced in December. 

Every year, the European Property Awards recognizes the top-performing real estate companies in Europe, honoring their excellent work ethic, and dedication towards helping their customers find and secure ideal properties. 

Ideal Homes Portugal says they are ecstatic and proud to have received such recognition, adding that it feels great to know that all their efforts and commitment to offering the best service have not gone unnoticed. They are especially proud of their staff, property owners and clients who they credit with their success.

The real estate company has been operating in Portugal since 2012 and has assisted many investors to purchase property in the finest locations in Portugal. They pride themselves on being friendly and professional and working side by side to guide customers through the process of buying their dream home in Portugal.

The company has formed strong links and created deep and meaningful mutually beneficial relationships with other agents, property owners and developers in the Algarve, the perfect mix for finding the ideal property in Portugal.

The company also boasts of a dedicated team of friendly and experienced staff, committed to offering sterling customer service, and willing to go the extra mile in ensuring customers are happy and satisfied with the options presented to them.

Ideal Homes is also able to assist with all property and rental management requirements. Additionally they also have their own in-house mortgage broker who can assist you to obtain financing for your property. All these services and more are just part of their formula for success.

About Ideal Homes

Established in 2012, Ideal Homes Portugal has quickly become the leading Real Estate Services firm in the Algarve due to its Founders knowledge and expertise in the area, having worked for several years in the International Property sector, both in Portugal and worldwide. We specialise in providing services for clients looking to purchase in Portugal, throughout the whole purchase process and beyond, we always provide full support to our clients.

With a dedicated team of friendly and experienced staff, we can advise you on all aspects of property ownership in Portugal. Working with the right people when dealing with a foreign country is always important wherever you go. 

Through our long established links with developers, other agents and owners in the Algarve you can be sure that Ideal Homes Portugal will find you the ideal home to suit your needs, whether it’s a second home, an investment, or a future primary home, we’ve got you covered. We also have contacts for reliable furniture suppliers, gardeners and all that you could need to personalise your new home in the Algarve. 

Slogan : “We are committed to Absolute Excellence” 

 

Exclusive Ideal Homes International discounted Florida resort condo helps visit Disney while using vacation dollars to build wealth

Apr 4, 2021 | Business

By purchasing an exclusive Ideal Homes International discounted resort condominium in Orlando, you can take the family to see Disney and use your vacation dollars that would otherwise be spent on hotels to build wealth.

“This luxurious condominium is already a good deal. It’s even better now with our exclusive 10 percent discount, only for Ideal Homes International investors that aren’t available to the general public. The deal applies to a limited number of two or three-bedroom condominiums starting at $337,000 before the discount,” said Ideal Homes International President Chris White.

When you’re not there, management will rent it out for you. You can use the income to pay your mortgage with maybe some extra money in your pocket depending on how often you use it. Now, you don’t have to sacrifice your retirement savings for a Florida dream vacation.

It’s a hands-off investment. The management takes care of everything for a cut of the rental income. You don’t have to worry about any bookings, maintenance, insurance or upkeep. If something goes wrong with your unit, it’s covered and part of management’s guarantee.

The resort is near Florida’s Disney, Universal Studios and Sea World theme parks and an hour from the ocean. It’s on a lake and has plenty of activities for the family with two swimming pools, beautiful water park, lazy river, surfing simulator, spa, restaurants and bar.

“It’s very safe in a gated community. Parents could leave their kids at the waterpark while having a nice meal at one of the four onsite restaurants. There’s music playing all the time. There are also watersports, kayaks, and paddleboards and you can go fishing with the kids at the lake,” said White.

You can stay and not worry about transportation. The resort is only six miles away from Disney and 30 minutes to Universal theme park with free shuttles. Units also have laundry room and kitchen facilities so you can save money.

With the exclusive Ideal Homes International 10 percent discount, you could buy a $337,000 two-bedroom condominium for $303,300. When you purchase a unit, you could use it for two to four weeks a year for yourself, kids, grandkids and have a nice holiday while rentals pay off your mortgage when you’re not there.

If you stay for a month during peak times, it will lower returns compared to someone who never uses it.

Florida currently has a booming real estate market that could continue to grow after the pandemic. If you decide to sell the condominium in five to eight years, it’s likely to increase in value.

“If you decide to sell it for $500,000, it’s possible to make about $206,000. It could be higher if rentals managed to pay off some of the mortgage. That depends on the rental market, how often and when you use it,” said White.

This a great way to save for retirement, while taking your family on vacation at one of the most luxurious places in Florida.

You don’t have to worry about finding renters. Demand is huge from the 22 million tourists visiting the area of Florida every year. Around Christmas or Easter, the resort is fully booked. Most of the time, it’s 75 percent booked with renters spending about $300 a night.

Condominium ownership through this exclusive Ideal Homes International deal is also a great opportunity for people in the U.K. thinking about immigrating to Florida for its great year-round weather and lower tax rates.

White will be giving a Zoom four-hour presentation at the resort with his staff, management, and a mortgage broker from April 5 – April 9 from 10 a.m. – 10 p.m. EST.

The resort will also be adding new units that can be secured for a 10 percent deposit. During the presentation, White will also be offering a number of incentives such as a 10-day package for your family to enjoy Disney and more.

“We can even arrange mortgages right on the spot making it easier for you to take part in this Florida dream vacation investment,” said White.

If you’re interested in attending the presentation, register at the Ideal Homes International website. You can also contact Chris White by phone at (407) 459-9280 or [email protected].

FOR FURTHER INFORMATION:

Chris White

President

Ideal Homes International

Orlando, FL

(407) 459-9280

[email protected]