Despite a volatile IPO market during the first six months of this year, Hong Kong as a listing location has improved significantly from last year by fund-raising size, with a value of HK$50.3 billion. At the "IPO Market Interim Review and Outlook for 2010" press briefing last week, PricewaterhouseCoopers (PwC) predicted that Hong Kong will continue to be ranked one of the top IPO listing locations in 2010, with more than HK$330 billion expected to be raised from new IPOs.
The total number of IPOs in the first half of 2010 is 31, compared to 18 in the same period last year. The value of the IPO funds raised had increased from HK$17.6 billion in the same period last year to HK$50.3 billion this year representing a 186% increase. Industrial products (39%) and retail, consumer goods and services (35%) dominated new listings in terms of number, followed by financial services (13%), information technology and telecommunications (10%) and energy and utilities (3%). The IPO market in Hong Kong remained active in the first six months of 2010, with the average deal size of successful listings (excluding companies that raise funds of more than HK$5 billion) increasing by 71% from last year to HK$1.2 billion.
"IPO activities will remain active in the second half of 2010 if there are no further significant negative economic factors. We expected that overseas companies and large and medium size Chinese enterprises will continue to list in Hong Kong. The investment focus in the second half will be mainly in the sectors of finance, energy and mining, retail, consumer goods and services, and industrials," says Edmond Chan, Assurance partner of PricewaterhouseCoopers Hong Kong.