SOURCE: PricewaterhouseCoopers LLP
Relentless desire for IPOs as pipeline of listings continues to build
HONG KONG, 2 July 2013 – Hong Kong’s IPO market experienced a revival in the first half of 2013, with a notable increase in total fundraising. Despite the US Federal Reserve’s QE withdrawal plan and credit tightening in the Mainland affecting market sentiment in the near term, PwC expects the city to regain a Top 3 global IPO market position in 2013.
The first half of 2013 saw 23 new listings in Hong Kong, with IPOs particularly higher in the second quarter. This compares to 32 listings in the same period last year. IPO activity in terms of fundraising size reached HK$39.5 billion in the first half of 2013, an increase of 28% from the first half of 2012. This clearly illustrates that despite a decrease in the number of IPOs, there is a strong appetite for new listings with the average size of fundraisings stepping up significantly.
The Hong Kong IPO market and pipeline remain fundamentally strong, with a certain number of companies preparing or awaiting IPOs. The temporary closure of fundraising activities in the Mainland, combined with loosening of listing rules for H-shares, have resulted in many Chinese companies considering Hong Kong as their hub of choice to raise funds, particularly through an IPO.