As fundraising amounts surged in the city during the second half, AFP Global accounting services advisory firm KPMG and PricewaterhouseCoopers PwC expect Hong Kong to regain its place as one of the world's top three fundraising destinations this year.
The number of IPO deals and total IPO fundraising proceeds from the city's initial public offering IPO market has decreased by 25 percent and 70 percent respectively, according to KPMG. After a slow start, Hong Kong s market saw a surge in fundraising in the second half of 2022 that accounted for more than 80 percent of the full-year IPO proceeds.
The Hong Kong market is expected to be one of the top listing destinations in 2023 with a strong pipeline of more than 120 companies seeking IPOs with a goal of raising HK $180 billion $23.07 billion from around 90 deals. The Hong Kong market is expected to become one of the top listing destinations in 2023, with a strong pipeline of more than 120 companies seeking IPOs aiming to raise HK $180 billion $23.07 billion from around 90 deals, according to Irene Chu, partner and Hong Kong head of New Economy and Life Sciences at KPMG China.
Chu said that the Chinese mainland's policy measures aimed at stabilizing the economy and pursuing high-quality economic development will help to create a favorable environment for fundraising.
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She added that the rules for specialist technology companies proposed by Hong Kong Exchanges and Clearing will open the door for high growth innovative companies at early stages of development to list in Hong Kong and raise funds for further research and development.
From 100 IPO deals in 2023, PwC estimates total fundraising in Hong Kong will fetch between HK $180 billion and HK $200 billion.
In 2023, we expect Hong Kong's IPO market to rebound due to factors such as major interest rate hikes by central banks, according to Benson Wong, PwC Hong Kong Entrepreneur Group Leader.
Hong Kong Exchanges and Clearing is consulting on the new listing rules for specialized technology companies. Wong said that more technology companies will be attracted to Hong Kong for fundraising when the rules are implemented.
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PwC predicts that total IPO deals and total IPO fund proceeds in 2022 will be 19 percent and 68 percent less than in the previous year.