Global tech IPOs surge three times, but Hong Kong is out of the top 10

Hong Kong has failed to secure a spot in the top 10 league table for funds raised from IPOs of technology companies worldwide, which surged three times to US$18.87 billion in the first eight months of the year.

According to Thomson Reuters data, Hong Kong’s main board only ranked at the world’s 12th largest market in terms of IPO funds raised by technology companies, while the second board Growth Enterprise Market ranked 19th.

This marks a contrast to the ranking for the world’s largest IPO market, where Hong Kong’s main board is placed fourth as its strength lies in drawing financial firms to list, but not technology companies.

Yet, Hong Kong has seen improvement this year. So far, three technology firm IPOs have raised a combined US$424.1 million this year, which is 30 times higher than the same period last year when one firm raised US$14.8 million.

The increase is largely attributed to the IPO of FIT Hon Teng, a subsidiary of the world’s largest electronics contract manufacturer and maker of connectors for Apple’s iPhones that raised US$393.58 million in June. It was also the world’s eighth largest technology firm IPO this year.

Despite the improvement, funds raised from technology firm IPOs on the main board only accounted for 2.3 per cent of global technology firm IPOs. The volume is substantially lower than that of the New York Stock Exchange, the top technology IPO centre, where four technology firm IPOs to date have raised US$4.56 billion, accounting for 24.2 per cent of global funds raised, the Thomson Reuters data showed.

The Swiss Stock Exchange ranked second and South Korea ranked third, while Shenzhen ChiNext ranked fourth, and Singapore was fifth.