84 new economy companies raise HK$302b

Business | 29 Apr 2020 6:37 pm

A total of 84 new economy companies, including health care and biotech companies, have listed in Hong Kong since the new listing rules took effect in April 2018, raising HK$302.3 billion in total and accounted for 50.8 percent of initial public offering funds raised during the period, said the Hong Kong Exchanges and Clearing (0388).

The listing rules have allowed pre-revenue biotech companies and new economy companies with non-standard share structures to raise capital in Hong Kong for the first time.

Funds raised via new economy IPOs grew to around 49 percent of total IPO fundraising in 2018 and 2019, compared with 34.6 percent in 2017 and 15.2 percent in 2016, said the HKEX.

New economy companies listed since the new listing regime took effect now account for 17 percent of Hong Kong’s total market capitalization.

Meanwhile, the average daily turnover contribution from new economy companies listed since 2017 in the cash equities market rose from 4.1 percent in 2017 to 15.4 percent in 2019, said HKEX.

The stock exchange has recorded a total of 28 health care and biotech listings on the main board since the new rules took effect, raising HK$82.5 billion.

There are currently 146 health care companies listed on Hong Kong markets, with a combined market capitalization of HK$1.85 trillion, up 72 percent from April 2018, data from the stock exchange shows.


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