Shanghai overtakes Hong Kong as world’s top IPO destination but mega deals waiting in wings will shake up full-year rankings
- Shanghai world’s top IPO market as Hong Kong falls to sixth place in first quarter
- JD Logistics, WeDoctor and China Bohai Bank among Hong Kong IPO candidates for later in year
Shanghai overtook Hong Kong as the world’s top initial public offering (IPO) destination in the first three months of the year, but mega deals waiting in the wings for calmer markets could yet shake up the full-year rankings.
The Shanghai exchange’s stellar performance in the first quarter was in part due to the 30.7 billion yuan (US$4.5 billion) IPO launched by Beijing-Shanghai High Speed Railway, the operator of the rail link between China’s two biggest cities.
Companies raised US$7.27 billion on the Shanghai Stock Exchange, boosted by US$3.68 billion worth of technology start-ups listing on its Science and Technology Innovation board (Star). New York’s Nasdaq stock market came in third, with US$5.2 billion in IPO proceeds.
Hong Kong, the world’s top IPO exchange in 2019, dropped to sixth place in the first quarter. However, the city is not out of the race.
Companies in sectors that are more resilient to the economic impact of the novel coronavirus pandemic – such as e-commerce, health care, biotechnology, and some financial institutions – are planning to launch deals in Hong Kong during the second half of the year, IPO bankers and accountants said.
