Business

Deutsche Bank suffers from Hong Kong IPO retreat due to staffing gap

Deutsche Bank AG will temporarily lose its ability to sponsor a new public offering in Hong Kong as it was unable to arrange replacements in time for the two leaving staff.

Sponsors will play a senior role in IPOs in Hong Kong, perform due diligence on companies preparing to go public, and help guide them through the listing process. Banks and brokerage firms that act as sponsors must have at least two individuals who act as IPO principals approved by the City’s Securities and Futures Commission.

The holdup was previously reported by the Financial Times. According to a Deutsche Bank spokeswoman, Deutsche Bank has hired two managing directors from other financial institutions and will begin its role within a few weeks.

Until recently, Germany had two designated principals, Rowena Wang and Poon Tsz Yuen. Mr. Wang stopped working at the bank on June 16th, the SFC website showed. A bank spokeswoman confirmed that Mr. Poon has recently resigned.

Germany, on the other hand, can act as an IPO underwriter, but not as a sponsor. IPOs in Hong Kong usually have contracts with many other banks in addition to sponsors.

Deutsche Bank suffers from Hong Kong IPO retreat due to staffing gap

Source link Deutsche Bank suffers from Hong Kong IPO retreat due to staffing gap

Back to top button