Hong Kong Exchanges and Clearing could have about 140 initial public offerings by the end of the year, raising around HK$400 billion (US$51.62 billion), second only to the Shanghai Stock Exchange in terms of total fundraising, global accounting firm Deloitte predicted on Wednesday.
By the end of September, the Hong Kong Special Administrative Region (HKSAR) is likely to have 99 IPOs on board, similar to the number in the same period a year ago. The total fundraising amount could increase 67 percent year-on-year to HK$213.8 billion. New-economy firms dominated the city’s IPO market in the first three quarters, with 27 listed.
The total fundraising amount could increase 67 percent year-on-year to HK$213.8 billion. New-economy firms dominated the city’s IPO market in the first three quarters, with 27 listed
ALSO READ: Ant moves closer to US$35b IPO with registration move
Edward Au, co-leader of Deloitte’s national public offering group, said he believes the IPO market in the HKSAR will remain active in the fourth quarter. He expects there to be another two or three super-large-cap listings (above US$1 billion) in the last quarter. Life sciences, healthcare, biotech as well as technology, media and telecom businesses will continue to support the city’s IPO market, he said.
Following Alibaba’s example, many US-listed Chinese mainland companies are going back to the HKSAR for a secondary listing this year to better attract mainland capital. Deloitte expects two or three mainland companies will have secondary listings in the HKSAR in the next three months and about five or six mainland companies will come back home next year.
In addition, the market is looking to an extremely big IPO next month, which is believed to be the mainland’s Ant Group.
ALSO READ: HK traders chased 1,600-in-1 odds to buy IPO that flopped
It is reported that the financial technology firm, an affiliate of e-commerce giant Alibaba, is seeking to raise at least US$35 billion in its simultaneous listing in the HKSAR and Shanghai, making it the world’s largest-ever IPO.
The specific percentage breakdown between the HKSAR and Shanghai floats has yet to be finalized, but the company plans to sell more shares on Shanghai’s tech-heavy STAR Market than it does in the HKSAR.
The offering would be a boost to the STAR Market’s status as a fast-growing capital markets center. According to Deloitte, companies are expected to raise more than 400 billion yuan ($58.9 billion) via IPOs on the STAR Market by the end of this year, catapulting Shanghai Stock Exchange to the top global IPO spot in 2020.
READ MORE: JD.com to spin off health unit, list in Hong Kong
