Hong Kong is on course to cement its status as the world’s biggest market for initial public offerings with the expected listing of a heavyweight Chinese bank in 2016.
With HK$250 billion (US$32.26 billion) tucked under its belt, Hong Kong overtook New York as the No. 1 fundraising venue this year, the Hong Kong Economic Journal reports.
Hong Kong will top that record in fundraising size and number next year, Benson Wong, assurance partner at PricewaterhouseCoopers Hong Kong, said.
Wong said an unnamed mega bank is expected to hit the market in 2016 with a fundraising target that will dwarf the combined haul of Huatai Securities Co. Ltd. (06886.HK) and GF Securities Co. Ltd. (01776.HK), this year’s biggest IPOs.
Also, seven to eight companies, each seeking tens of billions of dollars, will list in 2016, he said.
Nearly a dozen other companies are planning IPOs in the HK$5 billion to HK$10 billion range.
These are mainly in the financial services sector including securities firms and city commercial banks.
Wong expects Hong Kong’s IPO market to remain robust given 7 percent economic growth forecast for mainland China in 2016 and ongoing quantitative easing in Europe.
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