Hong Kong emerged as the world’s second largest IPO market in 2013 from fourth place a year ago, raising a total of HK$168.9 billion (US$21.78 billion) with 104 listings, Deloitte said in a press release Wednesday.
The city’s initial public offering market has staged a swift recovery since September with a number of multibillion-dollar deals thanks to positive market sentiment, especially after the Communist Party leadership held its Third Plenum in November to set the country’s reform agenda for the next five to 10 years.
Looking into 2014, the accounting firm expects the growth momentum to continue, with a mega IPO from an energy and resources company that will seek to raise over HK$30 billion in the first quarter of 2014. It also expects four to five city commercial banks and agricultural commercial banks to tap the IPO market in Hong Kong this year.
However, it will take a lot more for Hong Kong to regain the IPO crown jewel from the New York Stock Exchange, which raised nearly 100 percent more proceeds with 50 percent more deals in 2013, said Edward Au, co-leader of National Public Offering Group, Deloitte China.
For the mainland’s A-share IPO market, which has been stagnant since November 2012, Deloitte expects about 200 to 230 companies to float their shares this year, raising a combined 150-170 billion yuan (US$24.78-28.08 billion), the statement said.
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