Hong Kong is expecting to see a slew of blockbuster IPOs from Chinese technology companies with a combined estimated market capitalization of some $500 billion during 2018 and 2019, according to Reuters. This will represent a sharp contrast to the previous year, which was the city’s worst year for raising equity in a decade.
The fresh round of bumper IPOs may be a sign that Hong Kong is now a rival to New York as the preferred destination of China’s new-economy giants for listings. Among the well-known companies set for Hong Kong IPOs are smartphone maker Xiaomi and wealth management platform Lufax.
Bankers estimate Xiaomi’s IPO could value the company at around $100 billion, while Lufax was valued at $18.5 billion in its last funding round.