FINANCIAL SERVICES | Staff Reporter, Hong Kong

Which sector dominated the IPO market in 2017?

A company from this sector raised a whopping $17.2b last year.

IPOs from the financial services sector accounted for more than half (53%) of the total funds raised on the Main Board or $64.82b, according to PwC. 

Investment bank and securities company Guotai Junan Securities registered the largest gross funds after raising $17.2b, followed by insurance company Zhongan Online which raised $13.7b. 

Along with funds raised from the GEM board amounting to $5.9b, a total of $128.2b in IPO funds was raised this year, marking a 34% decline compared to the amount raised last year.
With the exclusion of companies that raised more than $10b, average deal size also fell 8% short at $1.2b in 2017.

“Affected by global geopolitical and economic uncertainties, the Hong Kong IPO market slowed down in early 2017. Some companies delayed their listing schedule. However, Hong Kong stock market’s performance stepped up in the second half of the year and stimulated the investment climate. Under stimulation from GEM Board IPO activities, IPO activities increased as a whole.
However, the total annual funds raised was still lower than last year,” said PwC Hong Kong Partner of Capital Markets Service Eddie Wong. 

PwC predicts a total of 80 IPOs in 2018 including the delayed high-value IPOs on the Main Board with an estimated total funds raised between $200 to $250b.The firm adds that the capital market is expected to rally in 2018 amidst ongoing market reforms and reclaim the throne as the top IPO market globally.

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