Hong Kong could see a revival of its initial public offering market in the second half of the year, with as many as 80 listings netting a total of HK$110 billion to HK$160 billion, auditing firm Deloitte predicted yesterday.
This would be a far cry from the first half of this year, which was the worst half-year since the trough of 2009 in the aftermath of the financial crisis. Only 32 listings went ahead in the first six months of 2012, raising HK$30.6 billion, down 84 per cent from the same period last year in deal value.
The depressing performance put Hong Kong at No 5 in the global listing league table. Even with a rebound in the second half, it is uncertain whether the city will remain the No 1 fund-raising destination in the world for the fourth consecutive year.
Edward Au, a partner of Deloitte responsible for overseeing IPOs, said about 200 companies were seeking to list and 80 of them would go ahead in the second half of the year. Six of the companies should raise at least HK$10 billion, while 10 would raise at least HK$2 billion, he said.
Terence Cheung, another partner of Deloitte, said Hong Kong might attract foreign banks motivated by the need to meet the Basel III capital requirements and the chances for international expansion as Western banks offloaded their assets.
Au said the city might also position itself as a global hub for listings from the resources sector should the Hong Kong Exchanges and Clearing succeed in acquiring the London Metal Exchange.