Companies going public in Hong Kong are getting the message that less is more.
The trend backfired, as the IPOs tended to underperform those using fewer bankers, and valuations were no higher, data compiled by Bloomberg show.
Now, if recent IPOs are an indication, companies are going the other way. Pork producer WH Group, whose IPO imploded in April after it enlisted a record 28 banks, is trying again, this time using just two main advisers in an effort to raise about $2.1bn. Luye Pharma Group hired only three banks when it went public in early July in an $878m offering in Hong Kong. A return to fewer deal advisers should also spell good news for the banks, which have seen IPO revenues drop as they share fees with more competitors.
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