Hong Kong IPO market outlook bright in 2023 as listing reforms to attract tech, international firms, analysts say

Tech listing reforms and a push to attract international firms will draw more IPOs to Hong Kong in 2023, UBS banker says

Analysts are optimistic that Hong Kong could move up on the IPO fundraising charts in 2023 after clinging to its No 3 rank last year

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Hong Kong stock exchange’s reforms targeting specialised tech firms will help the company attract a slew of IPOs, experts say. Photo: Nora Tam

Published: 9:30am, 2 Jan 2023Updated: 9:52am, 2 Jan 2023

Hong Kong’s biggest listing reform in five years targeting technology companies is likely to help the city reclaim the crown as the world’s top fundraising market, according to industry watchers.

Bourse operator Hong Kong Exchanges and Clearing (HKEX) in December completed a consultation paving the way for new listing regulations, which would allow pre-revenue tech companies with a valuation of at least HK$15 billion (US$1.9 billion) to apply to list as soon as early 2023.

Five types of tech firms, such as those in cloud computing, artificial intelligence as well advanced hardware like electric and autonomous vehicles, semiconductors and metaverse, could qualify under the new requirements.

“The new Big Tech listing regime under Chapter 18C will be the catalyst that boosts Hong Kong as a listing revenue for technology companies,” said John Lee Chen-kwok, the Hong Kong-based vice-chairman and head of Greater China global banking at UBS.

“The new reform plan, which can meet the fundraising needs of many of these large technology companies, is expected to repeat the success of the 2018 listing reform that has attracted companies with multiple voting rights and pre-revenue biotechnology firms to list in Hong Kong.”