Corporate Financing Analysis - Regulatory Changes To Boost Hong Kong's IPO Sector Once More - 29 JAN 2018


2018 will be a comeback year for the Hong Kong IPO arena, which will see the exchange broaden its issuer base and diversity in the capital market. After a disaster year for the local Hong Kong Stock Exchange (HKEx) in 2017 (which saw the bourse lose its crown and slip to as low as third in the global IPO destination rankings), the exchange has proactively announced two key regulatory changes that BMI believes will broaden its appeal to potential listing candidates in 2018 and beyond. In particular, we highlight that the amendments have been drawn up to promote the offshore bourse as a tech hub (to go along with its leading status as a financial services hub) and appeal to the growing number of start-up unicorns, which have been fuelling listing activity around the world over the last year. In sum, there are a series of potentially large floats lined up for 2018 and Hong Kong is working hard to put itself in the best possible position to secure those deals and put itself back into contention to retake the IPO crown, which is lost to the New York Stock (NYSE) for the first time in three years last year.

The two impending rule changes have been met with resistance from some quarters but look set to clear the necessary hurdles to be introduced by the end of H118, broadening the appeal of the listing destination in the process.

Dual-Class Share Sales

Hong Kong Drops Two Places
Top Three Global IPO Markets Of 2017 By Total Proceeds, USDbn
Source: Dealogic

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