Hong Kong IPO market’s ‘very positive momentum’ set to build, HKEX CEO says
After Midea’s US$3.98 billion listing on Tuesday, ‘we’re seeing a lot of very good signs in the IPO market’, says Bonnie Chan
The momentum in Hong Kong’s initial public offering (IPO) market is set to continue building as positive signals indicate more mega deals on the horizon, according to bourse operator chief Bonnie Chan Yiting.
The world’s largest maker of home appliances raised HK$31.01 billion (US$3.98 billion) in the city’s largest IPO in more than three years. With strong investor interest, Midea may exercise an overallotment option that would expand the deal size to US$4.6 billion, making it the world’s second-largest fundraising exercise this year.
More mega deals could come to fruition in Hong Kong, as mainland Chinese authorities continue to encourage leading Chinese enterprises to list in the city, Chan said. “We have a perfect example today in the form of this very symbolic IPO of Midea Group,” she said.
The IPO vaulted Hong Kong into the top five listing venues globally, according to fundraising amount, Chan said. The city had dropped to 13th on that ranking in the first half of the year, a letdown from its status as the world’s top IPO destination in seven of the past 15 years.
Hong Kong has raised around HK$51 billion across 45 IPOs this year, according to an estimate by KPMG.
