A strong second half of the year boosted Hong Kong into the top five financial centers by funds raised via initial public offerings for 2024.
Hong Kong became the fourth initial public offering (IPO) market worldwide in 2024, according to a KPMG report. 63 deals raised HK$82.9 billion ($10.8 billion), marking a 78 percent increase compared to 2023 when the city ranked sixth. Chinese electrical appliance manufacturer Midea was the largest deal by far with proceeds of HK$35.7 billion.
Globally, India was the leading IPO market ($17.3 billion), followed by NASDAQ ($16.5 billion), New York Stock Exchange ($15.9 billion), Hong Kong and Shanghai ($8.8 billion). In total, IPOs globally delivered $119.1 billion across 1,159 deals with a 10 percent and 15 percent decline, respectively, in funds raised and deal volume.
2025 Outlook
According to Louis Lau, partner and head of Hong Kong capital markets group at KPMG China, Hong Kong’s outlook for 2025 is positive due to several factors. They include measures from the mainland regulator to encourage listings by leading Chinese enterprises, a more relaxed monetary policy by the People’s Bank of China and the potential for secondary listings with the inclusion of Middle Eastern bourses as recognized stock exchanges.
«With positive momentum and increasing investor confidence in the Hong Kong IPO market, the city is becoming an increasingly attractive option for IPO applicants. Consequently, we anticipate a steady stream of sizeable IPOs in 2025,» Lau commented.
