Despite a lackluster year in 2023, Hong Kong will see a sharp rebound back to the top rankings in initial public offerings for 2024, according to KPMG.
Hong Kong will reclaim its position amongst the top five global rankings by initial public offerings in 2024, according to a report by KPMG. This follows a lackluster year in 2023 that saw the number of IPOs drop 21 percent to 70 while the funds raised fell 56 percent to HK$46.3 billion ($5.9 billion).
«2023 marked a slow year for the Hong Kong IPO markets, as both corporates and investors exhibited caution amidst global market uncertainties,» said Irene Chu, partner as well as head of new economy and life sciences at KPMG China.
Market Tailwinds
According to KPMG, there are several positive drivers supporting the potential IPO rebound. They include listing reforms that could attract high-growth tech startups and increased connectivity with the Middle East.
«Despite the prevailing subdued market sentiments, the fundamentals of Hong Kong’s capital market remain robust and resilient,» Chu added. «With investors shifting their attention towards technologies such as artificial intelligence, semiconductors and green technology, Hong Kong is well positioned to spark a recovery in its IPO activity by embracing these growing trends.»
