Hong Kong IPO revenues are expected to exceed last year's HK$169 billion ($21.8 billion), according to a market update released by KPMG on Wednesday.

The IPO market was driven by a strong performance in the first half, which brought in revenues of HK$80.8 billion from 44 IPOs. In comparison, the first half of 2013 brought in revenues of HK$39.7 billion from 21 IPOs.

However, the postponement of Chinese pork giant WH Group's IPO in April and weak reception for a number of planned mega IPOs lowered the chances of the Hong Kong IPO market hitting earlier full-year fundraising forecasts for 2014.

Rebecca Chan, partner and head of Hong Kong capital markets at KPMG China, said the reason for a strong second quarter was partly down to a build up in the IPO pipeline by the 50 or so IPO applications in March 2014 wanting to avoid the new public disclosure requirements, effective on April 1.

This trend is set to continue in the second half of 2014, with over 20 companies expected to list in the month of July.

Despite the increased number of IPOs, in the second quarter the overall market sentiment was weak with seven out of the 23 Main Board IPOs undersubscribed. This might lead to potential applicants taking a wait-and-see attitude towards attempting listings in the remainder of the year.

The overall performance in 2014 will depend on the fourth quarter, the traditional peak season for Hong Kong listings, Chan said.