Hong Kong’s IPO Market Set to Soar in 2025
After a remarkable year, Hong Kong’s initial public offering (IPO) market is poised for even greater success in 2025. The city’s stock exchange, Hong Kong Exchanges and Clearing (HKEX), is gearing up for a surge in market debuts, building on the momentum of 2024.
A Satisfying Year for Investment Bankers
Last year, companies and investors raised a staggering US$11 billion from 64 first-time stock offerings on the main board, making Hong Kong the fifth busiest IPO venue globally. This represents an 87% increase from the previous year, driven in part by Midea Group’s massive HK$35.6 billion (US$4.6 billion) deal in September.
Top Performers
China Merchants Bank led the pack of bookrunners, handling 37 deals worth US$1.1 billion. China International Capital Corp and Huatai Securities followed closely, with 23 and 16 deals, respectively. UBS was the busiest international investment bank, managing 21 deals that raised US$736.5 million.
A Bright Outlook for 2025
Industry experts predict a strong year ahead, driven by policy support from mainland Chinese regulators and an easier interest-rate regime. The listing of Chinese EV battery giant Contemporary Amperex Technology in Hong Kong is expected to be a market highlight in 2025.
Consumption and Exports to Drive Growth
Investors will be closely watching how Beijing’s monetary and fiscal stimulus measures will boost the economy, particularly in consumption and exports. According to Edward Au, managing partner for the southern region at Deloitte China, IPO candidates in the consumer sector are optimistic about leveraging these incentives to capitalize on growth opportunities.
Hong Kong’s Capital Markets: A Natural Choice
As Chinese companies look to expand globally, Hong Kong’s capital markets become an attractive option for fundraising. Deloitte forecasts IPO proceeds to increase 70% to HK$150 billion in 2025, with Chinese companies contributing significantly to the volume.
Global Fundraising Trends
Globally, fundraising rose 0.4% to US$120.2 billion in 2024, little changed from the previous year. The National Stock Exchange in India hosted the most deals, followed by the Bombay Stock Exchange, Nasdaq, and the New York Stock Exchange.
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