After a satisfactory year for investment bankers in Hong Kong, which helped lift the city back into the top 10 initial public offerings (IPO) around the world, the new year could be merrier as the Hong Kong Exchanges and Clearing (HKEX) prepares for more market debutants.
Companies and investors raised US$11 billion from 64 initial public offerings on the main board, according to data compiled by the London Stock Exchange Group, making it the fifth busiest IPO venue. India's two main exchanges and US bourses Nasdaq and the New York Stock Exchange (NYSE) topped the league table.
Tokyo, Saudi Exchange, Abu Dhabi, Madrid and the ChiNext board in Shenzhen completed the top 10 locations.
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Proceeds from Hong Kong IPOs surged 87 percent from a year earlier, boosted by Midea Group's HK$35.6 billion (US$4.6 billion) deal in September, the world's second-biggest IPO in 2024. The US$5.1 billion Nasdaq IPO and Hyundai, a real estate in the United States, Lineage. US$3.3 billion Motor India rounded out the top three bids.
Visitors at the Midea booth during expo in Beijing in 2017. Photo: Shutterstock alt=Visitors at the Midea booth during expo in Beijing in 2017. Photo: Shutterstock>
It has been a “satisfying” year, said Louis Wong, executive director of Phillip Capital Management. “The IPO market will continue to do well next year with policy support from (mainland Chinese regulators) and an easier interest rate regime.”
IPO bankers will look back on 2024 with relief, having plodded along with small deals through the halfway mark when it came in 13th, a two-decade low. By the end of today, however, the local stock exchange would have completed its first positive year since 2019 in terms of the profit raised.
China Merchants Bank topped the list of bookrunners with 37 deals involving US$1.1 billion, while China International Capital Corp was credited with 23 deals involving US$950.3 million, according to LSEG. Huatai Securities came third with 16 deals that raised US$892.8 million.
UBS was the busiest of all international investment banks, having handled 21 deals that raised US$736.5 million in profit.
The listing for Chinese EV battery king Contemporary Amperex Technology in Hong Kong will peak in the market in 2025. Photo: Reuters alt=The listing for Chinese EV battery king Contemporary Amperex Technology in Hong Kong will peak in the market in 2025. Photo: Reuters >