Deloitte: Predicts that the fundraising amount for Hong Kong IPOs in 2023 will be only HKD 50 billion, the lowest in 11 years.
Ou Zhenxing estimates that this year's Hong Kong IPO is unlikely to reach the predicted HKD 180 billion and may only achieve HKD 50 billion, the lowest level since 2010-2011.
According to Dolphin Research, on September 22nd, Deloitte's South China Managing Partner, Ou Zhenxing, stated at a press conference that the number of Hong Kong IPOs predicted by the bank for this year has been reduced from 100 to 70, a decrease of 30% compared to the forecast in June. As for the total amount of funds raised for the year, Ou Zhenxing estimates that Hong Kong IPOs will be difficult to reach the predicted HKD 180 billion, and may only reach HKD 50 billion, which is the lowest level since 2010-2011.
Ou Zhenxing explained that due to the uncertainty of the direction of US interest rates, global funds may not return to Asia in the short term, including the Hong Kong and A-share markets. In addition, the current valuation of Hong Kong IPOs is relatively low, with a forecasted price-earnings ratio of only 11 times, making it difficult to attract large fundraising companies to list in Hong Kong.
Ou Zhenxing pointed out that Deloitte originally expected that there would be corporate spin-offs listing in Hong Kong this year, but it is currently estimated that this will be difficult to achieve in the remaining quarter. Therefore, it is expected that the funds raised through IPOs in Hong Kong this year will be less than the low of HKD 90 billion in 2010-2011. Even so, subtracting the funds raised in the first three quarters of HKD 24.7 billion, it is still possible to raise HKD 25.3 billion in a single quarter, which is considered quite good.