In Focus
FINANCIAL SERVICES | Staff Reporter, Hong Kong

IPOs surge 33% to US$725m in H1 2018

A total of 53 companies went public in the first half of the year.

With a greater number of issuers embracing domestic exchanges as their listing destinations, total funds raised via IPOs in Hong Kong hit US$725m in the first half of the year, according to law firm Baker McKenzie.

Medical provider C-Mer Eye Care which raised over US$80m in early January, was easily the largest domestic IPO by an HK issuer. 

In a breakdown, the retail sector registered 9 floations which raised US$111m during the first half of the year whilst the consumer staples sector raised $141m over the same period.

The strong momentum of Hong Kong IPO market is set to continue over the coming months as the massive reforms introduced by the bourse operator HkEx kick into effect, Baker McKenzie added.

Also read: Thriving IPO scene under threat as the Mainland eyes similar bourse reforms

The changes, which are one of the largest in almost two decades, include allowing companies with dual-class structures which have been banned since 1980s and allowing biotech companies without a track record of profitability to list, which have already attracted a slew of biotech firms from the Mainland and the US. 

Hong Kong is also set to host the blockbuster flotations of smartphone maker Xiaomi and mobile phone operator tower China Tower which could easily raise $10b each, fueling the city's bid to challenge the dominace of New York and Nasdaq in the global IPO rankings. 

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