Blame it on the ongoing economic slide in Europe.
Total proceeds from initial public offerings in Hong Kong reached HK$271.4 billion in 2011, said Pricewaterhouse Cooper's said in a report.
The figure, while 40% below 2010 levels, still made Hong Kong one of the top three IPO destinations in the world last year.
In 2012, however, PwC expects net proceeds from local IPOs to dive between 15 percent and 26.3 percent from last year.
Lower IPO proceeds have also reduced fees for underwriters, most of whom were Western or Japanese investment banks when it came to large Hong Kong offerings in the past.
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