The city’s IPO market is red-hot so far this year, boosted by a string of blockbuster deals as Chinese firms seek capital to expand after a years-long lull. Hong Kong is also benefiting from increased geopolitical tension, picking up listings that in previous years might have gone to New York while investors have been shifting cash away from the US.
In the first half of the year, total proceeds raised in Hong Kong jumped 701% to HK$107.1 billion, on 44 IPOs, according to PwC. Listings in June reached their highest monthly total since December 2022 and the pace is expected to be hectic the rest of the year.
“The second half of the year is traditionally the peak period for Hong Kong IPOs,” said Eddie Wong, PwC Hong Kong capital markets leader. “With more than 200 listing applications already submitted, we expect strong momentum to continue, supported by several mega deals.”
New York, including NYSE and Nasdaq, is overall bigger this year with HK$127.2 billion in listings, according to PwC.
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For the rest of the year, two to three big IPOs of more than HK$10 billion each are expected, Wong told reporters Wednesday. These mega-deal hopefuls could come from traditional sectors and some of them haven’t applied officially to list yet, he said.
Clothing retailer Shein is said to plan switching to a Hong Kong IPO as its blockbuster London deal faces challenges from Chinese regulators, Bloomberg News reported earlier.
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“Many large-cap companies listed on the A-share market, as well as those planning to spin off their China operations, are looking to list in Hong Kong,” said Diamantina Leong, PwC Hong Kong capital markets services partner.
Chart: Bloomberg
