The initial public offering market in Hong Kong will stabilize in 2024, according to PricewaterhouseCoopers which forecasts that the fundraising amount will double compared to last year.
In 2024, 80 companies will list in Hong Kong to raise more than HK$100 billion ($12.8 billion), according to a PwC forecast. This compares to the lackluster year in 2023 which saw fundraising plunge 56 percent year-on-year to HK$46.3 billion from 73 freshly listed firms.
The local market is expected to benefit from external tailwinds including potential interest rate cuts in the second quarter, demand for corporate development financing and the return of capital from Europe, the US and the Middle East to Asia.
Local Reforms
External factors aside, Hong Kong has also made local developments to boost the market. This includes the launch of a digital platform to shorten the IPO settlement process and the implementation of the Chapter 18C listing regime, which will lower the requirements for certain technology companies to make their market debuts.
According to PwC, three to five specialist tech firms will be listed in the city through the new regime this year.
