In Focus
FINANCIAL SERVICES | Staff Reporter, Hong Kong
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Funds raised by Hong Kong IPOs down 37% to $85.7b

But the number of IPOs increased 52% to 114.

Hong Kong remains on top of the initial public offering (IPO) landscape with the number of deals in the first three quarters of 2017 up by 52% compared to the same period in 2016, according to a report by PwC.

The total number of IPOs in the first three quarters of 2017 is 114 as compared to 75 in the first three quarters of 2016.

Meanwhile, the number of companies listed on the Main Board increased from 50 in the first three quarters of 2016 to 59 in the first three quarters of 2017; whilst new listings on GEM increased from 25 in the first three quarters of 2016 to 55 in the first three quarters of 2017.

Despite the increase in the number of deals, total IPO funds raised in the first three quarters of 2017 went down 37% compared to the amount raised in the same period last year. Total funds raised from January to September 2017 closed at HK$85.7b from last year's HK$135.9b.

Here's more from PwC:

Strong SME listings could lead the market to reach new record of listings in the full year of 2017, to make HK one of the preferred IPO destinations around the world.

Some potential blockbuster IPOs have been rescheduled or postponed due to situation changes, both externally and internally. However, it doesn’t affect the overall attractiveness of HK stock market, as the best platform for global investors and Mainland companies across the region.

The ongoing market reform, which aims at strengthen the competitiveness of HK stock markets and facilitate new-economy firms’ fundraising activities, will pave the way for more fintech listings in the future.

Joint actions between regulators by improving management strategy, which effectively contained the untoward price volatility of GEM stocks, as well as regulating the market order and creates a healthier environment.

The number of foreign companies especially Asian companies listing in Hong Kong will continue to grow, which reassures HK’s position of as financial hub in Asia.

Economic and political uncertainties across the region, such as Brexit, the Fed reduces its balance sheet, and tension in North East Asia, will continue to affect the sentiment of financial markets. On the other hand, the proposed US tax reform could bring positive impact on global financial markets.

 

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