Hong Kong’s IPO market has poorest first half since 2013
Deloitte says total annual proceeds from a projected 115 deals could end up being 24 per cent lower, at HK$200 billion
Hong Kong’s initial public offering (IPO) market has had its worst first six-month performance since 2013, due to uncertainties over China and the global economy, Deloitte said on Wednesday.
A total of 38 companies raised HK$43.5 billion in Hong Kong in the first six months, 66 per cent down year on year, while proceeds raised in the second quarter were less than half of the first, Deloitte’s figures show.
The number of IPOs by mainland companies and their valuations also both dropped from last year, said Edward Au, co-leader of national public offerings for Deloitte China.
The two biggest IPOs in the first six months were completed by mainland based China Zheshang Bank and BOC Aviation, the aircraft leasing unit of Bank of China.
But proceeds from the two totalled just HK$42.4 billion, a third of the HK$128.4 billion raised in same period last year, Deloitte said.
Hong Kong remains an ideal IPO market for mainland companies, although we noticed some mega property developer delist from Hong Kong this year
However, Hong Kong still outperformed other markets globally in terms of fund raising, Au said.