Hong Kong seen breaking IPO record in 2021

Finance | Avery Chen 17 Dec 2020

Hong Kong is expected to have about 120 to 130 initial public offerings next year, raising more than HK$400 billion and likely exceeding the record level of 2010.

Hong Kong's listing environment has become increasingly conducive to fundraising by new economy companies as more investment funds are setting up here due to the new limited partnership fund regime, says Dick Kay, leader of the Deloitte China national public offering group.

Southern China regional leader Kinson Lau added: "The launch of the Hang Seng Tech Index, incorporation of weighted voting rights and secondary stocks into Hang Seng indices, conclusions of the corporate WVR beneficiaries consultation, proposals for a paperless listing and subscription regime and sentiment toward changes in the US regulatory environment will provide further impetus for secondary listings of US-listed Chinese companies from innovative sectors."

Deloitte forecasts that more than 10 secondary new listings in Hong Kong will raise over HK$100 billion in 2021. They include renowned technology and new economy enterprises, with some having corporate weighted voting rights structures.

Another four or five new economy firms are expected to complete IPOs that could each raise at least HK$10 billion.

By the end of this year Hong Kong is projected to have recorded about 145 new listings, raising about HK$397.3 billion.

That will represent a 12-percent drop in the number of new listings but a 26-percent rise in IPO proceeds.

Meanwhile, Chinese detergent maker Blue Moon (6993) closed 13 percent higher at HK$14.8 yesterday. That was less than expected as its shares rose around 20 percent in gray markets on Tuesday.

Also yesterday, Netjoy (2131), a mainland short video marketing solutions provider, and Sino-Ocean Service (6677), a property management service provider, fell more than 1 percent in gray markets last night ahead of their debuts.

Zero2IPO, an integrated service platform for equity investment, has also opened retail books to raise up to HK$440 million, with a minimum investment of HK$4,444 per board lot of 400 shares.

Far East Horizon (3360) plans to spin off and separately list its equipment operation business.

And China International Marine Containers (2039) is considering a spin-off of CIMC Safeway Technology to list in the A share market.

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