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Mia Castagnone

Initial public offerings (IPOs) in Hong Kong are bouncing back, shaking off a slow start to the year as more Chinese companies turned to the city to raise capital and global investors grew bullish after Beijing pledged to rescue the nation’s stock and property market.
Fundraising reached HK$83.4 billion (US$10.7 billion) this year through November 30, according to data compiled by EY, an increase of 80 per cent from a year earlier. The local IPO market slumped for a third straight year in 2023 when volume dropped to US$5.9 billion, according to LSE Group data.
Globally, companies have completed 1,162 IPOs this year involving US$117.3 billion of proceeds, representing a 14 per cent and 7 per cent decrease, respectively, it added.
Growing confidence among investors in Hong Kong has helped lure several attractive and jumbo IPOs to the market, according to Louis Lau, partner at Hong Kong capital markets group KPMG China, including Midea Group’s US$3.98 billion offering in September and SF Holding’s US$793 million deal in November.


The second-half charge helped pull the market from a slumber, when IPO proceeds in the city slumped to a two-decade low and its ranking fell to 13th globally. While IPOs in Hong Kong could rise to HK$120 billion next year, India and the US are likely to remain among the top three venues, KPMG said.
Several mainland Chinese companies have turned to Hong Kong for funding to support their global expansion plans. Chinese tea shop operator Sichuan Baicha Baidao raised aboutUS$330 million in April, while cosmetics maker Mao Geping raised over US$270 million earlier this week.
Next year, EY and KPMG expect the city’s IPO pipeline to continue to be bolstered by Chinese companies. Hong Kong remains a clear option for them, Lau said, given the state support. Liquidity in the local market has also improved, according to Jacky Lai, Hong Kong capital market services leader at EY.
“The Federal Reserve’s interest rate cuts and reforms [by the stock exchange] to enhance market efficiency, including streamlining the listing application process and allowing trading during bad weather, have revitalised the Hong Kong market,” he added.
Among IPO’s cornerstone investors, Chinese state-linked entities made up about 70 per cent in 2024, according to EY. In addition, 95 per cent of the IPOs in Hong Kong were oversubscribed, versus 91 per cent last year. Technology, biotech and healthcare were their favoured industries, it said.


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Business

Banking & Finance

Companies

The city has recorded US$10.7 billion of proceeds from 64 IPOs this year through November; more deals in December


The city has recorded US$10.7 billion of proceeds from 64 IPOs this year through November; more deals in December.


Banking & finance

HKEX

Hong Kong’s IPO market to end 3-year slump amid China support, rising confidence

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The city has recorded US$10.7 billion of proceeds from 64 IPOs this year through November; more deals in December

The city has recorded US$10.7 billion of proceeds from 64 IPOs this year through November; more deals in December