KPMG raises Hong Kong IPO fundraising forecast to over HKD 300 billion on strong Q3 performance and robust pipeline Go back »
2018-09-20 | Beijing
A buoyant market will propel the city to be the global top IPO destination by the end of 2018
KPMG China has revised its annual IPO fundraising forecast in Hong Kong from HKD 250 billion to over HKD 300 billion in 2018, in light of a strong Q3 performance and a robust listing pipeline, and expects the city to be the global top IPO destination.
In the third quarter of 2018 alone, the Main Board is poised to record HKD 190 billion in total funds raised from 40 new listings, exceeding the HKD 122.6 billion recorded in the full year of 2017, KPMG China analysis finds. This is attributed to the HKD 54.3 billion IPO by China Tower Corp, the largest deal of the period, as well as a number of listings from new economy companies which contributed to almost half of the fund raised in Q3.
Benefitting from a buoyant market, IPO proceeds in the Main Board are expected to reach HKD 238.2 billion in the first nine months, almost triple the amount raised a year ago. The number of IPOs is forecasted to increase by 73 percent to 88, while the average deal size is HKD 2.71 billion, an increase from HKD 1.63 billion at the same time last year. The GEM continues to be relatively stable, raising HKD 4.6 billion from 67 new listings in the first three quarters of 2018.
With the Hong Kong Stock Exchange currently the top IPO destination in terms of total funds raised, KPMG expects Hong Kong to remain the highest performing global stock exchange at the end of the year as the momentum continues.
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Source: KPMG
