Hong Kong is likely to retain its role as one of the world's hottest centers for initial public offerings this year, while the IPO market on the Chinese mainland is expected to resume next month after being suspended for nearly a year, an industry report said.
A total of 43 companies have launched IPOs on the Hong Kong Stock Exchange by the end of September this year, raising HK$58.7 billion (US$7.6 billion), Deloitte Touche Tohmatsu said in a report yesterday.
The proceeds represented a year-on-year increase of 31.3 percent, with nearly one-third of the proceeds coming from 21 IPOs that were completed in the third quarter, according to the report.
"The number of listings and proceeds have ridden on the stock market's momentum generated after a wave of news on the positive signs of the Chinese economy," said Dick Kay, Eastern China Regional Partner of the National Public Offering Group of Deloitte China.
Kay said market indicators including the size of the five largest IPOs, the number of listing applications, the offer price and the average first-day return all improved by double-digit numbers or percentage points over the first three quarters of last year, thanks to ample liquidity and positive sentiment.
So far this year, New York led the global IPO race in terms of proceeds raised. Hong Kong was fifth.
The accounting firm expected the Hong Kong market to see 65 to 75 new offerings by the end of 2013, raising HK$100 billion to HK$130 billion, maintaining its role as one of the top five global IPO centers.
As for the A-share market on the Chinese mainland, Deloitte said the IPO market, which has been suspended for 11 months, could resume around the Third Plenary Session of the 18th Central Committee of the Communist Party of China in November.
Anthony Wu, China A-Share Capital Market Leader of the National Public Offering Group at Deloitte China, forecasts that around 20 to 30 IPOs on the A-share market would raise funds of approximately 25 billion yuan (US$4.08 billion) to 40 billion yuan by the end of this year.
As of September 26, 748 companies were waiting for China Securities Regulatory Commission approval to launch IPOs on the Shanghai and Shenzhen bourses.
