“Formidable” clusters of companies are set to tap Hong Kong’s initial public offering (IPO) market, which is an attractive entry point for global capital seeking diversification, according to the Hong Kong Exchanges and Clearing (HKEX).
IPOs in the city have raised around US$10 billion this year and there were more than 150 companies in the pipeline, including many US$1-billion-plus jumbo deals, CEO Bonnie Chan Yiting said on Wednesday at the Greater China Private Equity Summit organised by the Hong Kong Venture Capital and Private Equity Association.
The three clusters driving the “formidable” IPO pipeline in Hong Kong were mainland Chinese A-share firms, US-listed Chinese firms and specialist companies, she said.
“Many of the A to H listings have international ambitions,” she said. “As this going-out concept continues, you will see many of these A share companies wanting to have an offshore fundraising platform to support their overseas expansion plans.”
Within this category, more than 40 companies had filed their IPO applications or had announced such plans, Chan said, adding that the momentum in the IPO market would be a boon for the region’s private equity sector, aiding fundraising and investment exits.
On the potential homecoming of Chinese companies listed in the US, Chan said the Hong Kong stock exchange was ready to welcome them.
