Hong Kong to be among top three IPO hubs in 2023, with fundraising set to double to US$26 billion: PwC

The city should regain bragging rights as a top three IPO market in 2023 as stable markets and reforms fill its deal pipeline, PwC report says

Hong Kong has fallen to fourth globally in 2022, as the number of deals dropped 19 per cent and average deal value declined 59 per cent

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Steven Lam Hoi-yuen, executive director and co-CEO of Gogox Holding celebrated his company’s IPO at Hong Kong Exchanges and Clearing on June 24, 2022. Photo: Dickson Lee

Published: 4:59pm, 5 Dec 2022

The number of initial public offerings (IPOs) in Hong Kong is likely to drop 19 per cent this year amid a global slowdown, but the city’s stock exchange should regain bragging rights as one of the world’s top three markets by facilitating twice as much fundingraising in 2023, according to PwC.

Hong Kong saw 69 IPOs in the first 11 months of 2022, and PwC expects this to reach 80 by the end of December, bringing the year’s total funds raised to HK$105.6 billion (US$13.6 billion).

A stable capital market, as well as regulatory reforms and enhancements, should fill the city’s IPO pipeline with more listing applications next year, according to Benson Wong, entrepreneur group leader at PwC Hong Kong.

“We expect Hong Kong’s IPO market to rebound in 2023 as factors such as major interest rate hikes by central banks are gradually digested,” Wong said.

A bull sculpture looks over the plaza outside Exchange Square, the home of bourse operator Hong Kong Exchanges and Clearing, in Central, Hong Kong, on October 22, 2022. The exchange saw 19 per cent fewer IPOs in 2022 than in 2021. Photo: Yik Yeung-man

Hong Kong should see 100 listings in 2023, with funds raised nearly doubling to HK$200 billion, with 20 to 30 per cent coming from private equity, according to a PwC report released on Monday.