According to comprehensive reports from Worldway Immigration: As of July 1st, data recently released by the professional services firm Deloitte shows that in the first half of 2014, the total funds raised through initial public offerings (IPOs) in the Hong Kong market reached a new high since 2011, and the number of IPOs hit a 10-year high for the same period. Deloitte expects the Hong Kong IPO market to continue its impressive performance in the second half of the year.
During the first six months of 2014, the Hong Kong market recorded a total of 48 IPOs, with a total fundraising amount of HK$81.3 billion, representing increases of 105% and 118% respectively over the 22 IPOs that raised HK$39.7 billion in the same period last year. More than half (53%) of the funds raised came from three large-scale IPOs: Power Assets Holdings, CRRC Corporation, and Harbin Bank, while the others were primarily small and medium-sized IPOs. Consequently, Hong Kong ranks fourth globally in the IPO market, trailing behind NASDAQ.
Edward Au, Co-Leader of the National Public Offering Group at Deloitte China, stated that the Hong Kong IPO market is expected to replicate its impressive first-half performance in the second half of the year. "The outlook for the mainland economy, especially its economic growth performance, will be the key to maintaining the favorable momentum of the Hong Kong IPO market for the remainder of the year."
With the introduction of reform measures such as new urbanization, internet finance, mainland consumption, environmental protection, and the opening up of internet services, companies in real estate, retail, financial services, energy and resources, environmental protection, clean technology, and internet-related sectors will become the primary drivers of Hong Kong IPO issuances.
Given that several large-scale IPO plans have been shelved or adjusted, Au expects that Hong Kong will complete over 100 IPOs by the end of 2014, raising HK$170 billion, with the latter figure representing the lower end of Deloitte's forecast. Furthermore, with two or three large-scale IPOs waiting for the right moment to launch, and considering Alibaba's decision to list on the New York Stock Exchange, Hong Kong still has the opportunity to compete with NASDAQ for the position of the world's third-largest IPO market in 2014.
Worldway Immigration Editor
