IPO market to regain momentum in H2 2022

For the whole year, PwC expects Hong Kong to raise between $180m to $200m.

Hong Kong’s IPO market will be back on its feet in the second half of the year, following its tumble in the first half, according to the consultancy firm, PwC.

In a report, PwC said it expects Hong Kong to raise between  $180m to $200m  and close 80 deals for the entire year.

So far, from January to June, there have been 27 new listings in Hong Kong, most of which were companies involved in retail, consumer goods & services (37%), and industrial products (26%).

This represents a 43% drop from the same period last year when there were 47 listings. Funds raised from January to June also dropped by 91% YoY to $19.7b from $214.36b.

The IPO market’s slowdown, however, will not be for long according to PwC.

“Hong Kong’s pipeline for IPOs remains active and with the proven fundamentals of U.S.- listed Chinese enterprises and new economy businesses expected to continue to be the main drivers of listing activity,” the firm said.

“Economic growth and liquidity measures from the Government and the Central Bank, have included allowing Chinese companies which are not from innovative sectors to seek secondary listings in Hong Kong. This will attract high-quality U.S. listed Chinese enterprises to list in Hong Kong and enhance investors’ confidence,” PwC added.