Hong Kong could see up to 80 new listings in this year, with the hub regaining its crown as the world’s largest market for initial public offerings.
The Hong Kong initial public offering market slowed down early last year, hit by global geopolitical and economic uncertainties. Some companies also delayed their listing schedule.
Despite dropping from the top spot to finish third behind New York and Shanghai in 2017, there were 22 Asian companies listed in 2017, compared to 8 in 2016 . The measure is significant for 2018, says Eddie Wong, partner of capital markets services at PwC in Hong Kong.
Financial Services Diluted by Fintech
This year, the consultancy expects up to HK$250 billion to be raised, supported by rescheduled mega-sized IPOs from last year and a proposed dual-class share structure attracting more companies to seek Hong Kong IPOs.
Financial service firms continued to lead the race with 15 IPOs, making up 53 percent of total funds raised on the main board. Of those listings, five companies raised over HK$5 billion. However, the tally of new financial services company listings decreased by 21 percent against 2016, and the total funds raised decreased by 50 percent.
Asia-Pacific Will Lead
All major engines of growth in the global economy are now synchronized in an upward trajectory for the first time since the end of the global financial crisis, according to a recent EY report on initial public offerings.
Asia-Pacific will continue to be the leading wealth driver, retaining its position as the most active region for new listings this year. EY expects to see this trend continuing into 2018, with IPOs expected to rise in Hong Kong, Japan and the Asean region.
