HK IPOs on course for record takings

Finance | Avery Chen 8 Apr 2021

Hong Kong's initial public offering market is on course for record-breaking fundraising this year, driven by ten US-listed Chinese new listings, according to Deloitte.

Deloitte forecasts 120-130 IPOs will raise more than HK$400 billion in Hong Kong for 2021, and it is likely to surpass the previous fundraising record of HK$450 billion in 2010. Four to five new economy firms are expected to go public this year, each of them will raise more than HK$10 billion. That will help Hong Kong to retain its position as a top-three IPO market around the world.

Total fundraising in the first quarter surged 8.4 times to HK$132.8 billion, with 32 new listings.

Chinese online travel platform kicks off a Hong Kong secondary listing today to raise as much as HK$10.53 billion. It is offering 31.64 million shares at no more than HK$333 apiece, with 7 percent of shares for retail investors.

The minimum investment is HK$16,818 per board lot of 50 shares.

Some new economy stocks have entered into correction recently with some trading below IPO prices in debut, affected by geopolitical tensions and the market situation, said Edward Au, managing partner of the southern region at Deloitte China.

However, he expects funds will continue to flow into the sector, helped by abundant liquidity, with investors having a better understanding of new-economy firms.

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