Update on Hong Kong: World Leader in IPOs (Again)

Last month we wrote about a “war for talent” in Hong Kong, in which we highlighted the growing number of firms that have recently launched local Hong Kong law practices.  Local practices are especially advantageous when competing for IPO work, where the competition can be fierce.  An article in today’s Wall Street Journal (subscription required) reports that Hong Kong will edge out New York this year for new listings, making Hong Kong the top global venue for the third year in a row. 

As of last Friday, data provided by Dealogic shows that Hong Kong has raised $30.2 billion in new listings, compared to New York with $29 billion.  The rebound is a surprise, since New York led for most of the year, and is due to three big IPOs in the market now which are worth as much as $6.75 billion.  Leading companies, such as Haitong Securities, China’s second-largest brokerage, have attracted institutional investors “with a combination of lower-than-expected prices and smaller offerings, bankers involved in the deals said.”  The other two companies in the market are New China Life Insurance Co., the country’s fourth biggest insurer by premiums, and Chow Tai Fook Jewelry Group Ltd., the world’s biggest jewelry company by at least some measures, which has drawn high-profile local investors and billionaire George Soros.

Posted by Marianne Purzycki