Facing headwinds

CMGE presses ahead with potential down-round HK IPO

The Shenzhen-based mobile game publisher returns to Hong Kong four years after take-private. However, it may yet fail to achieve the valuation it had when delisted.

CMGE Technology Group hopes to overcome some of the bearish sentiment surrounding the mobile gaming sector in Hong Kong by pressing ahead this week with an initial public offering worth up to HK$1.3 billion $166 million.

The Chinese, Shenzhen-headquartered mobile game developer started collecting institutional orders for its 461 million-share deal on Thursday, while retail subscriptions are slated to begin on Saturday, according to a source familiar with the situation. Both tranches are expected to close on October 24.

CMGE’s Reg S144A transaction is being marketed at HK$2.19 to HK$2.83 per share. The company will have a post-money free float of...

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