Corporate Financing Analysis - Hong Kong's IPO Crown To Slip Despite H117 Recovery - 31 JULY 2017


In line with the broader global uptick in listing activity, Hong Kong has enjoyed a renaissance in new listings so far this year with activity levels up by 23.3% in comparison to the same time last year. Despite this y-o-y uptick, however, the autonomous region's bourse, known as HKEX, looks almost certain to lose its IPO crown to the US this year. Looking further down the leaderboard, it also has a fight on its hands to maintain its 'top dog' status in Asia too as it struggles to continue to better the same volume and size of deals as are being completed on the Chinese Mainland in both Shanghai and Shenzhen.

As Thomson Reuters data show, Hong Kong played host to floats worth a combined USD6.9bn during the first-half, a tally which puts the bourse in fourth spot in the global nationality rankings, behind the two Mainland bourses in the Middle Kingdom which recorded a combined haul of deals worth USD18.1bn. Thomson Reuters data point out that the run-away favourite to finish top of the leaderboard remains the US. Across both the New York Stock Exchange (NYSE) and Nasdaq bourses combined, the North American nation has enjoyed listing activity worth USD18.9bn so far this year, a 350% increase in deal value y-o-y, as shown by Thomson Reuters data show. Unsurprisingly then, it is the US which was home to the largest float to be completed globally during the first-half in the form of social media firm Snap's successful float on the NYSE ( see BMI, ' Snap IPO A Potential Boon For US Tech Sector Floats ' , November 23 2016), which ranked as the largest tech fundraising since Chinese e-commerce giant Alibaba raised USD25bn back in 2014 ( see BMI, September 10 2014, ' Wall Street Braces Itself For Alibaba Float '). Moreover, such is the strength of the US IPO market that, when compared with its rivals, Asian markets have seen their share of global activity dip during the first half of 2017, slipping from a level of 45.9% in H116 to 38.8% a year later, highlighted by Dealogic data.

Reasons To Be Cheerful

Off The Pace
H117 Global IPO Activity By Nation, By Deal Value, USDbn
Thomson Reuters, BMI

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