Hong Kong IPO proceeds fall 34% due to lack of mega listings

However, it snagged third spot globally in total funds raised with an expected $128.2b.

Hong Kong’s IPO activity decelerated from last year’s high of $195.3b to a projected $128.2b by year end due to a glaring lack in blockbuster listings, according to a press release from Deloitte China.

Whilst there was a marked growth in total number of IPO’s with a projected 161 completed new listings this year, the lack of high-value listings led to a 34% decline in total generated funds.

“Both the numbers of new listings for the market and the GEM reached new highs. But the overall proceeds slipped with a dwindled average deal size and fewer mega offerings,” said Deloitte.

However, Hong Kong still snagged the third spot in terms of global IPO proceeds behind The New York Stock Exchange (NYSE) which started the year off with a series of mega offerings, followed by the Shanghai Stock Exchange.

Deloitte, however, expressed greater optimism on Hong Kong’s IPO prospects for the year ahead as the planned expansion to Hong Kong’s IPO regime is expected to fuel stronger interest to list in Hong Kong.

Overall, the company forecasts about 150-160 IPOs raising as much as $190b by the end of 2018.