Analysts bet on strong year for Hong Kong IPOs as city boasts almost 100 new listings in 2014
Despite Alibaba's decision to list in the US over Hong Kong, the city's bourse recorded a strong 12 months, and lawyers are cautiously optimistic for 2015.
January 09, 2015 at 12:11 AM
6 minute read
In the last four years, the Hong Kong IPO market has taken a few knock backs. 2012 saw the city's bourse ranked just fourth in global IPO rankings down from number one – where it had sat for the previous three years – and then last summer, just as dealflow appeared to be back on track, Chinese internet giant the Alibaba Group announced it would no longer be using Hong Kong as a platform for the world's largest IPO on record, but instead looking to the US.
Which is why the exchange's ranking as the number two bourse for 2014, having seen 90 new listings valued at $29bn according to Dealogic, was such good news. One could blame the global economy – worldwide IPO value topping $263bn during the year, up 52% from 2013 and reaching its highest levels since 2010, but most market observers would agree that Hong Kong's success has been, and will continue to be, more entrenched in its unique ability to service China.
Of course there is no doubt that the market has evolved – previously boasting mega deals by state-backed power companies and big banks; only to be characterised now by lower-value listings of small and medium-sized Chinese enterprises, mostly in the consumer and technology sectors (which is to be expected of a country which is transitioning from a manufacturing hub to a consumption-based economy). The way law firms have tendered for deals and arranged payments has also shifted, with most now expecting much lower fee quotes in light of high competition and a change in client profile, but requiring payment in installments in the event that a deal won't close. And yet despite all these changes, the overall outlook for Hong Kong as a financial hub remains fairly positive, and the hope is that in 2015, the market will remain steady on all fronts.
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Trending Stories
- 1The Law Firm Disrupted: For Big Law Names, Shorter is Sweeter
- 2Wine, Dine and Grind (Through the Weekend): Summer Associates Thirst For Experience in 'Real Matters'
- 3'That's Disappointing': Only 11% of MDL Appointments Went to Attorneys of Color in 2023
- 4What We Know About the Kentucky Judge Killed in His Chambers
- 5'I'm Staying Everything': Texas Bankruptcy Judge Halts Talc Trials Against J&J
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250