New stock offerings in Hong Kong are expected to generate more than double the amount of funds for companies this year, making the city’s stock exchange one of the five busiest venues globally, according to KPMG, reports the South China Morning Post. The firm expects 90 initial public offerings (IPOs) to raise HK$100 billion ($12.8 billion), banking on stronger inter-connectivity with the Middle East and spin-off listing opportunities to fill the pipeline. Positive sentiment among investors in artificial intelligence or AI, semiconductor and green technology could fuel deals in these sectors.
“Hong Kong is well positioned to spark a recovery in its IPO activity by embracing these growing trends,” Irene Chu, head of new economy and life sciences in Hong Kong at KPMG China, said at a media briefing on Tuesday.
Hong Kong ranked sixth in the global IPO league table last year, when 70 companies raised HK$46.3 billion from local retail and global institutional investors, according to KPMG. Shanghai and Shenzhen topped the table, recording RMB 210.8 billion ($29.5 billion) and RMB 148.1 billion, respectively, to reflect a 47% and 32% drop from a year earlier.