Date
17 October 2017
Ernst & Young's Ringo Choi said volume has been driven by small companies seeking funds worth HK$200 million or less. Photo: HKEJ
Ernst & Young's Ringo Choi said volume has been driven by small companies seeking funds worth HK$200 million or less. Photo: HKEJ

IPO activities remain strong in third quarter amid market slump

Initial public offering activities in Hong Kong remain strong despite the lackluster performance of the local stock market, Ringo Choi Wai-wing, Ernst & Young managing partner for China South, told the Hong Kong Economic Journal in an interview.

As of Sept. 21, HK$26.58 billion has been raised through IPOs this quarter, compared with HK$49.1 billion in the same period last year, according to the consultancy firm’s data.

However, the figure for this quarter has surpassed the levels in the third quarter of 2013 and 2012, Choi said.

The volume has been driven by small companies, particularly those seeking funds worth HK$200 million or less. 

According to Ernst & Young, the fundraising size of the IPO market this year could reach HK$240 billion, potentially making it the largest globally as the stock exchanges in Shanghai and Shenzhen have suspended new listings while the US market has seen a slow momentum.

Currently, six large companies are in the pipeline to list their shares in Hong Kong, raising a combined HK$110 billion.

More policy-driven sectors such as the pharmaceutical and environmental protection industries will become the focus of the market, shifting from internet, technology and financial companies, Choi added.

[Chinese version中文版]

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