In Focus
ECONOMY, MARKETS & INVESTING | Staff Reporter, Hong Kong

IPO funds raised by Main Board-listed firms down 60% to HK$12b

This is just for the year's first quarter.

There were substantial increase in IPO numbers, which were led by small to medium size floats, according to PwC's quarterly IPO review. Industrials and Retails are majority of IPO listings.

HK IPO market remained unaffected by the speed up of A shares stock listings. With strong pipeline supports vibrant fundraising activities, both Hong Kong and Mainland IPO markets sustained a healthy development.

Here's more from PwC:

Total fundraising size has been decreased comparing to 1Q2016, which was supported by two large scale Mainland Chinese banking IPOs. The market is concerned about factors like rate hike, Chinese economy and Brexit before making listing decision.

The total number of IPOs in the first quarter of 2017 is 40, compared to 20 in the first quarter of 2016.

The number of companies listed on the Main Board increased from 14 in the first quarter of 2016 to 21 in the first quarter of 2017; the number of new listings on GEM increased from 6 in the first quarter of 2016 to 19 in the first quarter of 2017.

Market uncertainties is likely to ease, with more than 100 companies in the IPO pipeline, it is expected the fundraising activities remain strong. There is possibility for mega sized IPO, which includes Financial services companies, if market sentiment continues to improve in this year.

New measures that are favourable to the financial markets could be introduced during the celebration of the 20th anniversary of the Reunification of Hong Kong to China. Reform proposal of GEM and consultation of New Board is expected to be introduced shortly.

Foreign companies especially Asian companies see HK as the preferred destination for overseas IPO. To attract a variety of overseas companies to be listed in HK, the market reform should be accelerated and deepened.

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