Hong Kong IPO market plummets to lowest in two decades

IPOs in Hong Kong only raised $1.5b to date, 35.2% lower than in H1 2023.

Hong Kong has recorded its lowest first-half total of initial public offerings (IPOs) in over two decades, according to data from the London Stock Exchange Group (LSEG).

Hong Kong only raised US$6.3b between January to July 2024, a 43.8% decline in proceeds compared to H1 2023. This also marks the lowest first-half total since 2003’s $1.8b.

IPOs in the Hong Kong stock exchange have only raised US$1.5b to date, down 35.2% compared to H1 2023. This is the lowest start to IPOs since 2003.

On a more positive note, IPO activity is steadily ramping up: a total of US$856.4m were raised in Q2, 39.8% higher compared to Q1, whilst the number of IPOs have risen 25% between Q2 and Q1. 

The number of equity capital market (ECM) issuances also grew 11.2% compared to H1 2023. This suggests that offerings were done in smaller sizes, according to LSEG.

Sichuan Baicha Baidao Industrial’s US$330.2m IPO is currently the biggest IPO in Hong Kong so far in 2024.

The activity in the mergers & acquisitions (M&A) space also declined. Overall announced M&A acidity totalled only US$37.9b so far in 2024– 42% lower compared to H1 2023. This makes it the lowest first half total since the pandemic era (US$35.9b in 2020).