Hong Kong on track to retain its crown as leading global market for IPOs
To remain on top in 2017 Hong Kong will need to woo more technology IPOs, says PwC
Hong Kong is likely to maintain its position as the world’s largest market for initial public offerings this year, thanks to the fundraising demand from mainland companies despite global uncertainties.
Fundraising demand among the Chinese financial sector will help propel the city into the top global rankings next year, but more effort to attract technology firms is needed to retain the No 1 spot, analysts at PwC Hong Kong said.
In the 11 months through November 31, Hong Kong had 109 companies listed in the main board and the Growth Enterprise Market board, raising HK$178.21 billion, according to data from auditing firm PwC Hong Kong.
Shanghai ranks in the No 2 spot, as 81 companies raised US$12.21 billion, and the New York Stock Exchange trails closely behind with 32 listings that raised US$10.07 billion during the same period.
Eddie Wong, partner of capital markets services at PwC Hong Kong, expects Hong Kong’s fundraising to exceed HK$200 billion by the end of this year given there are two to three major offerings in the pipeline.
“Although it is 20 per cent less than the HK$260 billion raised last year, Hong Kong has performed very well as market sentiment this year was quite poor,” he said.