Hong Kong is expected to raise HK$280 billion in initial public offerings this year, more than tripling the 2024 total and reclaiming the title of the world's top listing venue, Ernst & Young said on Thursday.
The projected proceeds, which would be the second-highest in nearly five years, mark a sharp rebound from last year when the Asian financial hub ranked fourth globally. The number of IPOs in the city is also expected to surpass 100 this year, up 43 percent from 2024.
The robust performance was driven by large listings, with the top 10 IPOs accounting for over half of the total proceeds at HK$154.7 billion, EY said in a report. The average fundraising size surged 137 percent year-on-year, with eight of those IPOs raising more than HK$10 billion each.
EY attributed part of the market's strong performance to new listing rules implemented by Hong Kong's bourse on August 4, which included adjusting the clawback mechanism and introducing a public offer proportion locking mechanism.
Among the 36 new listings since the rules took effect, only six have fallen below their issue price, EY said. The average first-day return for IPOs this year hit 38 percent, the highest in five years, while the first-day slump rate dropped to 24 percent.
Meanwhile, mainland China's A-share IPO market saw moderate growth, with more than 100 companies expected to list this year, raising over 110 billion yuan (HK$120.85 billion), up more than 53 percent year-on-year.
The Shanghai and Shenzhen stock exchanges are expected to rank fifth and eighth globally, respectively, by total fundraising this year, EY said.
