Hong Kong staged a rebound in funds raised via initial public offerings in 2024 and PwC believes the city could potentially further improve its global ranking in 2025.
In 2025, PwC estimates that Hong Kong could rank among the top three initial public offering (IPO) venues globally by funds raised, according to a report. This will include 70 to 80 IPOs raising approximately HK$130 billion ($16.7 billion) to HK$160 billion. Focus is expected to be on sectors such as AI, IT and telecoms, electric energy, and retail, consumer goods, and services.
The market will also be aided by recent regulatory developments such as an enhanced timeframe for the application process of new listings, arrangements to provide trading, clearing and settlement services during severe weather conditions as well as measures introduced by the Chinese securities watchdog to support mainland companies seeking to go public in Hong Kong.
2024 Rebound
In 2024, the Hong Kong market rebounded with 71 listings raising HK$87.5 billion. This marked an 89 percent year-on-year increase, placing the city fourth globally in IPO fundraising.
«If the overall capital market remains stable in 2025, as inflation and interest rates continue to fall and government’s economic stimulus measures take effect, many sizable A-share listed companies will list in Hong Kong,» commented Eddie Wong, PwC Hong Kong capital markets leader.
«The recovery of the IPO market will stimulate trading activity, enhance liquidity, and increase transaction volumes, facilitating the return to reasonable stock valuation ranges. Additionally, [Hong Kong Exchanges and Clearing] is actively exploring collaborations with other exchanges to attract overseas-listed companies to dual-list or secondary-list in Hong Kong, or to spin off their China or Asia businesses for listing in Hong Kong.»
