Hong Kong seen among five busiest IPO venues in 2024 with proceeds doubling to US$12.8 billion, KPMG forecasts
- Hong Kong seen rising to among top five busiest IPO venues as proceeds to more than double in 2024, KPMG forecasts
- China’s onshore market is expected to see a steady stream of IPOs after ending 2023 on a high
The firm expects 90 initial public offerings (IPOs) to raise HK$100 billion (US$12.8 billion), banking on stronger inter-connectivity with the Middle East and spin-off listing opportunities to fill the pipeline. Positive sentiment among investors in artificial intelligence or AI, semiconductor and green technology could fuel deals in these sectors.
“Hong Kong is well positioned to spark a recovery in its IPO activity by embracing these growing trends,” Irene Chu, head of new economy and life sciences in Hong Kong at KPMG China, said at a media briefing on Tuesday.
Hong Kong ranked sixth in the global IPO league table last year, when 70 companies raised HK$46.3 billion from local retail and global institutional investors, according to KPMG. Shanghai and Shenzhen topped the table, recording 210.8 billion yuan (US$29.5 billion) and 148.1 billion yuan, respectively, to reflect a 47 per cent and 32 per cent drop from a year earlier.
The local bourse is looking to benefit from several listing reforms to make it easier for “specialist” technology companies and small companies in the Greater Bay Area to raise funds from the public. Recent efforts to boost financial linkages with Saudi Arabia could also yield results including cross-border listings, KPMG said.