Hong Kong could regain top 3 IPO ranking by year-end after jumping to fifth in September

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IPOs in the city reached US$7.14 billion in the first nine months, exceeding last year’s total of US$5.9 billion, LSEG data shows

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Hong Kong stock exchange’s IPO fortunes have picked up in recent weeks. Photo: Bloomberg

Enoch Yiu

Published: 5:00pm, 27 Sep 2024Updated: 5:15pm, 27 Sep 2024

Hong Kong could potentially climb back into the top three among global initial public offering (IPO) markets by the end of the year, as analysts believe the recent bull run is set to attract some massive deals.

A total of 42 companies raised US$7.14 billion via IPOs on the main board of the Hong Kong stock exchange in the year’s first nine months, double the total from a year earlier, according to London Stock Exchange Group (LSEG) data released on Friday.

The increased fundraising helped Hong Kong to rise to fifth on the global IPO league table in September, from 13th in June.

“Hong Kong could rise further to become the third- or fourth-largest IPO market worldwide this year, as more large deals tap the increased valuations amid the recent market bull run,” said Kenny Ng Lai-yin, a strategist at Everbright Securities International.

The IPO fundraising amount in 2025 will have further room for improvement, he added.

The Hang Seng Index on Friday rose above the 20,000 level to the highest close since April 2023, following a renewed sense of optimism from investors after Beijing’s massive stimulus to rejuvenate the economy, markets and the property sector. Analysts said a significant increase in trading volume will have a stimulating effect on enterprises wanting to go public.