ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Markets

Hong Kong leads world in IPOs for 2018, driven by tech listings

Looser rules encourage big stock debuts around Asia

Xiaomi founder, Chairman and CEO Lei Jun hits the gong during the listing of his company on the Hong Kong Stock Exchange on July 9.   © Reuters

HONG KONG -- The crown for the world's top IPO market returned to Hong Kong in 2018, thanks to debuts by major Chinese technology companies won amid fierce global competition.

Fundraising through initial public offerings on the Hong Kong Stock Exchange looks to reach $36.6 billion this year, 120% more than in 2017, according to Deloitte. The New York Stock Exchange, which topped the list last year, appears headed for second place with $28.8 billion, followed by the Tokyo Stock Exchange at $26.2 billion.

A record 208 businesses are debuting in Hong Kong this year, including smartphone maker Xiaomi and food delivery-to-ticketing services platform Meituan Dianping. Of the 133 IPOs on the main board, 36 are by "new economy" companies in high-growth tech fields, according to KPMG.

The boom was fueled partly by changes to Hong Kong's listing rules in April. Xiaomi, for example, became the first company with multiple classes of shares carrying different voting rights -- an increasingly popular structure among tech companies -- to list on the exchange.

Many of 2018's biggest IPOs came from Asian companies. SoftBank Group's mobile unit, which debuted in Tokyo on Wednesday, topped the global list at $21.1 billion, followed by China Tower with $7.5 billion and Xiaomi's $5.4 billion. Foxconn Industrial Internet, a unit of key iPhone assembler Hon Hai Precision Industry, ranked high on the list as well.

Exchanges worldwide are vying to attract big tech IPOs, which tend to draw considerable interest from investors. Online video portal iQiyi, e-commerce platform Pinduoduo and music streaming service Tencent Music Entertainment Group -- all China-based companies -- listed in the U.S. this year.

The Singapore Exchange this year decided to let companies list with dual-class shares, not long after rival Hong Kong. Shanghai is considering forming a separate board for high-tech businesses.

As for 2019, Deloitte expects about 200 companies to debut in Hong Kong, raising up to 230 billion Hong Kong dollars ($29.4 billion). Though stock prices have flagged of late, many promising companies are waiting in the wings to go public.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends May 26th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media