It is expected to raise as much as $250b this year.
After slipping through the ranks due to a depressing lack of blockbuster listings in 2017, Hong Kong is poised to clinch the top spot in the global IPO market with total generated funds pegged between $200 to $250b in 2018, according to PwC.
PwC added that the expansion will be supported by a series of reform initiatives geared to boost the attractiveness of Hong Kong’s IPO market which includes the move to shift towards a dual-class share structure as well as the approval of pilot scheme of full H-share convertibility by Mainland regulators.
The proposal for the dual class share structure is expected to attract new economy enterprises to Hong Kong which in turn will further enhance the diversification of the local capital market.
Moreover, rescheduled mega-sized IPOs from 2017 is similarly expected to boost the IPO market from its sluggish performance in the previous year.
“Although global geopolitical and economic uncertainties, such as Brexit, the US Fed's contraction and interest rate increment, could continue to affect financial markets, we are confident that Hong Kong will continue to be the best financing platform in the region for bringing together international investors and Mainland enterprises,” said PwC Hong Kong Entrepreneur Group Leader Benson Wong.
Total funds raised by Hong Kong IPOs in 2017 amounted to $128.2b, representing a 34% decline from the previous year despite increased IPO activities at 174 new listings.
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