Hong Kong is expected to retain the top spot in the global initial public offering market in 2019 for the second year running, according to Deloitte, one of the world’s “Big Four” accountants. 

The New York-based professional services provider said fundraising on the HKSAR bourse this year is projected to see a year-on-year increase of 8.35 percent to HK$311.8 billion — the highest since 2010. 

Deloitte expected some 160 Hong Kong-bound IPO companies next year

Edward Au Chun-hing, co-leader of Deloitte China’s National Public Offering Group

Deloitte said that despite a lackluster start, Hong Kong’s primary market is set to retain the IPO crown with mega share sales, such as those of Hangzhou-based internet goliath Alibaba Group and US beer giant Budweiser APAC, fuelling the fundraising effort, and expected to drive Hong Kong past all its rivals. 

Trailing the SAR would be the Saudi bourse, as oil producer Saudi Aramco’s debut would catapult Saudi Arabia’s stock market to being this year’s first runner-up in the global IPO market.

Nasdaq and the Shanghai Stock Exchange would rank third and fourth, respectively, in 2019, according to Deloitte. 

Edward Au Chun-hing, co-leader of Deloitte China’s National Public Offering Group, said Deloitte expected some 160 Hong Kong-bound IPO companies next year, almost the same as for 2019. 

With more Chinese mainland stocks returning to the Hong Kong bourse, the city’s listing reforms and the flotation of more biotech stocks, Deloitte predicted that the amount of new shares to be raised in Hong Kong next year would be between HK$220 billion and HK$250 billion. 

However, that number would still represent a year-on-year decline of 20 to 29 percent. 

Au noted that mega share sales, such as those reaching HK$100 billion, don’t happen every year. The last time they reached such a scale was in 2010. 

He said without Alibaba’s secondary listing in Hong Kong, the city’s fundraising this year would be just about HK$210 billion.

kevindai@chinadailyhk.com