Deloitte raises HK IPO forecast to HK$200 billion as city regains top spot

Deloitte raised its forecast for Hong Kong’s full-year initial public offering value to HK$200 billion – up 54 percent – after the city reclaimed the top position among global markets in the first half.

The global auditing firm also estimated a total of 80 new companies to go public in the city this year, including 25 potential dual listings in both mainland China and Hong Kong (A+H shares) and applicants from the technology, media, telecommunications and consumer sectors.

For the first half of the year, Hong Kong hosted 40 new IPOs, raising a total of HK$102.1 billion. This represents an increase of 33 percent for IPO deals and a jump of over 670 percent in the proceeds raised from one year ago, according to Deloitte.

Thanks to mega IPOs like China’s battery giant CATL (3750), Hong Kong regained the top spot among global markets in the first half, far leading the second-ranking Nasdaq’s fundraising value of about HK$30 billion.

Deloitte also attributed Hong Kong's strong performance to the streamlined regulatory processes by local authorities and enhanced market liquidity, according to Robert Lui Chi-wang, the southern region offering services leader of the Deloitte China Capital Market Services group

Whether Hong Kong could stay at the top spot by the end of the year is difficult to gauge, said Edward Au Chun-hing, Southern Region managing partner at Deloitte China, adding he is cautiously optimistic about it, provided there are no material geopolitical or macroeconomic disruptions.

STAFF REPORTER