Star Market’s stellar IPO momentum to extend into 2020, with fundraising set to reach US$23 billion, says Deloitte China
- Nasdaq-style Star board propels Shanghai Stock Exchange to fourth biggest IPO market in 2019
- Flexible listing requirement and trading rules expected to draw more Chinese tech companies, including those already listed on other offshore exchanges
China’s Star Market, the Nasdaq-style tech board launched this year, will extend its stellar IPO performance into 2020, with up to 150 firms likely to raise up to 160 billion (US$22.9 billion) yuan, according to Deloitte China.
A total of 68 companies have raised 72.7 billion yuan on the Shanghai Stock Exchange’s Science and Technology Innovation Board since it opened in July.
“The Star board has revitalised China’s IPO market. It has successfully attracted a lot of companies, particularly from the telecom, media and technology sector,” said Dick Kay, co-leader at Deloitte China’s National Public Offering Group.
Excluding the Star Market, Deloitte China expects 140 to 170 issuers to raise 180 billion yuan to 220 billion yuan next year on the mainland’s two main exchanges in Shanghai and Shenzhen.
Overall listings on these two exchanges is expected to reach 196 by the year-end, with companies raising 246.5 billion yuan. Funds raised by the Star Market will account for 29 per cent of the total.
“Overall China’s IPO market has shown stellar performance this year, and increasingly we are seeing more Hong Kong listed Chinese companies seeking a secondary listing back at their home exchanges in China, including the Star board,” said Edward Au, co-leader at Deloitte China’s National Public Offering Group.