PwC: Hong Kong to reclaim global IPO fundraising crown in 2018

Hong Kong will once again to be the world’s largest IPO market in 2018, with an expected total fundraising between HK$200 to 250 billion by 80 IPOs, said PwC recently.

According to the Big Four firm, rescheduled mega-sized IPOs from 2017 and a proposed dual-class share structure—set to be implemented later this year, the approval of pilot scheme of full H-share convertibility by the Mainland regulators, will help attract more companies to seek IPOs in Hong Kong.

There were a record-breaking 174 new listings in 2017, of which 80 were Main Board listings, mostly comprised of industrial companies followed by retail, consumer goods & services companies, said PwC.

The GEM (Growth Enterprise Market) Board also broke its record number of listing companies. A total of 80 companies were listed on GEM in 2017, an increase of 80% compared year-on-year, PwC added.

Total funds raised by IPOs in 2017 reached HK$128.2 billion, marking a decline of 34% from the previous year.

“Affected by global geopolitical and economic uncertainties, the Hong Kong IPO market slowed down in early 2017,” said Eddie Wong, Partner of Capital Markets Services, PwC Hong Kong.

While Hong Kong dropped from the top spot to finish third behind New York and Shanghai in 2017, it had 22 Asian companies listed in 2017, compared to eight in 2016, Wong pointed out.

“We saw significant increase in number of new economy enterprise IPOs in Hong Kong market, which. continues to establish its position as the most important Asian IPO fund raising hub,” he said.

China: RMB 180 to 200 billion to be raised in 2018

Looking at mainland markets, PwC said that while momentum of the A-share IPO market has slowed down in the second half of the year due to the market response, there were 437 IPOs on 3 Main Boards in the Mainland with a total of RMB 235.1 billion funds raised.

The increase in number of IPOs and total funds raised are 93% and 56% respectively, PwC noted.

“We expect stabilized growth to continue in the mainland markets, with 300 to 350 new listings and the amount of funds raised between RMB 180 to 200 billion in 2018,” PwC said in a statement.

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