Hong Kong tops IPO volume global rankings

Jul 03, 2018
IPO market only expected to improve in the region this year

Hong Kong has topped IPO volume global rankings for the first half of 2018 – and this is expected to continue, as technology listings currently in progress will likely give the region a further boost.

The Chinese territory recorded 98 IPOs in the first half of the year. By comparison, the NYSE saw 35 IPOs in the same period, according to data from EY.

When it comes to IPO proceeds, however, Hong Kong comes fifth: the Hong Kong Stock Exchange’s (HKEX) main board, together with its Growth Enterprise Market, raised HK$50.2 bn ($6.4 bn) in the first six months of 2018. That’s about one third of the $18.6 bn raised by the NYSE, which takes the crown in first-half standings based on IPO proceeds.

Also beating Hong Kong in those rankings is Nasdaq, the Shanghai Stock Exchange and Deutsche Börse, which have raked in $11.4 bn, $10.1 bn and $8.9 bn, respectively.

But things are only expected to get better for Hong Kong’s IPO market with several high-profile companies – including major technology names – expected to come to market this year. Among those are Xiaomi, a consumer electronics company known for its smartphones, telecommunications infrastructure operator China Tower and Meituan-Dianping, an online platform for food delivery.

EY forecasts a total of HK$200 bn in funds will be raised by IPO activities in Hong Kong in 2018. Among the factors contributing to this outlook are recent reforms to the HKEX’s listing rules and a wider opening up of the market.

As for the mainland market, EY expects the first China DR, a scheme that will let mainland investors hold a form of shares in Chinese companies listed overseas, to be issued in the second half of the year.



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