Hong Kong to remain among top three IPO markets globally in 2020, raise HK$260 billion, PwC says
- 2018 listing reforms have diversified city’s capital market and laid an important foundation for its IPO market, accounting giant says
- Key to Hong Kong retaining its crown will be its ability to attract listings by giant companies, investment firm says
Hong Kong will continue to rank among the top three centres globally for initial public offerings in 2020, with 180 companies expected to raise as much as HK$260 billion (US$33.4 billion), accounting firm PricewaterhouseCoopers said in its “IPO Market Year End Review for 2019 and Outlook for 2020” report on Thursday.
While the forecast was 17.6 per cent lower than last year’s total of HK$315.5 billion, the highest amount raised in a single year since 2010, it was in line with the average of the past 10 years, Eddie Wong, partner at PwC Hong Kong’s IPO and capital markets services, said.
He said the city would remain among the top three IPO markets worldwide this year. “The listing regulation reforms in April 2018, including the weighted voting rights and biotechnology listing regulations reform, have not only enhanced the diversification of Hong Kong’s capital market, but laid an important foundation for the Hong Kong IPO market,” Wong said.
“In addition, a total of 23 overseas companies were successfully listed in Hong Kong in 2019. [Such] listings … are expected to remain active in 2020, with the possibility of increasing numbers compared with 2019.”
Last year, the stock exchange’s main board raised HK$314.5 billion through 169 IPOs, claiming the crown of the world’s largest listings market for a seventh time in 11 years. GEM, the smaller secondary board, raised HK$1 billion, PwC said.
And key to Hong Kong retaining this crown in 2020 will be its ability to attract listings by giant companies, said Jeffrey Chan Lap-tak, founding partner of investment firm Oriental Patron Financial Group.