Hong Kong’s H1 IPO fundraising expected to hit lowest in ten years, full-year IPO financing to drop over 21% – Deloitte
DATA STOCKS
Hong Kong’s H1 IPO fundraising expected to hit lowest in ten years, full-year IPO financing to drop over 21% – Deloitte
DATA STOCKS

Hong Kong’s H1 IPO fundraising expected to hit lowest in ten years, full-year IPO financing to drop over 21% – Deloitte

 

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As of the end of June, the number of IPOs in Hong Kong may reach 31, rising by 29% from a year earlier, and in lack of support from large IPOs, the amount of funds raised during the period may only rise 1% year over year to HK$17.8 billion, which would be the lowest in the past ten years, according to a report released by Deloitte.

Given China’s efforts to promote listings on the tech-heavy STAR Market on the Shanghai Stock Exchange and the Chinext Board on the Shenzhen Stock Exchange, the two bourses continued to post strong performance, ranking the top two globally in terms of financing amount in the first half. The NYSE ranked third, while Hong Kong and Indonesia to rank fifth and sixth in the first half of the year.

Deloitte predicted that Hong Kong is expected to see nearly 100 IPOs this year, with a total financing of about $180 billion, down 9% and 21.7%, respectively, lowered from the estimates three months ago.

The end of the rate-hiking cycle in the US and expected stimulus policy in mainland China will drive capital flows and rebound in valuation and Hong Kong’s IPO market is expected to become more active in the fourth quarter of the year, it said, adding that more US-listed Chinese companies and special technology companies are expected to seek listings in Hong Kong.

Mainland China’s A-share market is expected to see 120 – 140 IPOs in 2023, with the amount of fundraising reaching 240 – 275 billion yuan, it estimates.