Huge number of Chinese tech unicorns likely to IPO in Hong Kong in 2018, says JPMorgan Asia-Pacific chief
Combined valuation of these companies could reach up to US$1 trillion, says co-head of company’s investment banking unit in Asia-Pacific
A huge number of Chinese technology unicorns are likely to launch initial public offerings in Hong Kong in the next 12 to 24 months, which could significantly boost liquidity in its capital market, according to Nicolas Aguzin, chairman and chief executive for Asia-Pacific at JPMorgan.
“2018 will be a blockbuster year for Chinese unicorns to come to the capital market,” Aguzin said in an interview with the South China Morning Post in Hong Kong. “Investors here [in Hong Kong] have strong appetite for these high-growth, new economy companies.”
John Hall, co-head of the company’s investment banking unit in Asia-Pacific and global head of technology services, said a wave of Chinese technology IPOs in the next 12 to 24 months is likely to set a record for Hong Kong.
A number of Chinese technology companies have already started talking to investment banks and potential investors about the possibility of going public. If successful, these rapidly expanding Chinese technology stars could bring hundreds of billions worth of new shares into the market.
“I would say the combined valuation [of these companies] could reach up to US$1 trillion,” said Hall.