The U.S., mainland China and Hong Kong have continued to be key driving forces of the global IPO market in the first three quarters of 2019. The A-share market has achieved growth compared to the same period last year as a result of the introduction of the new STAR Market, while Hong Kong’s IPO market remained stable with a strong pipeline especially from the Infrastructure/Real Estate, TMT, Healthcare/Life Sciences and Financial Services sectors.
The A-share market is forecast to record 127 new listings worth a combined RMB 140.3 billion in IPO proceeds during the first three quarters of 2019, an increase from the RMB 115.4 billion raised in the first three quarters of 2018. As for Hong Kong, the Main Board is forecast to raise HKD 124.3 billion (USD 16 billion) in the first three quarters, with the number of IPO listings at 88 – identical to the total numbers as of the end of 2018 Q3.
Amid global economic uncertainties, some mega-sized companies this year have had difficulties listing, faced with a lower offering price, a reduced offer size or a need to postpone. However, based on the Hong Kong IPO’s solid pipeline, KPMG predicts an uptick in listings by the end of the year.