Hong Kong bests New York and Shanghai as it tops IPO activity rankings in Q1

The local exchange accounted for a fifth of global public listings after housing 57 flotations.

The Hong Kong Main Market (HKEX) and Growth Enterprise Market (GEM) has tied with the New York Stock Exchange for the title of the busiest exchange globally in Q1 after accounting for a fifth (20%) of global IPOs and 7% of proceeds, according to EY’s first quarter IPO report. 

There were 57 IPOs in both the main and GEM markets as of March 14 with an accumulated value of US$3.1b ($24.33b) in Q1. This represents a 46% QoQ increase.

“Despite a drop-off in Greater China IPO activity in Q1 2018, investor appetite remains strong. Every IPO in Hong Kong so far this year has been oversubscribed whilst every new Mainland listing has reached the maximum permitted first-day return of 44%,” the report noted.

In fact, the average deal size in the main market rose 2% at $28.9m whilst the exchange’s post IPO market cap is valued at $116.7m.

Also read: Check out which sector dominated Hong Kong's IPO charge in Q1

“The economic backdrop looks favorable for Hong Kong listings, with strong corporate earnings growth expected to support the stock market. The Hong Kong IPO market will continue to be busy, with more than 150 companies waiting to go public as at 20 March,” EY added.

In fact, five cross border IPOs on HKEx raised a combined US$115m as Singapore, Malaysian and US companies are opting to list in Hong Kong.

Looking ahead, Hong Kong is poised for another strong year as it’s estimated to gain further momentum in its bid for the most profitable Southeast Asian listings, putting it in the running to steal the year-end crown away from New York.