IPO Surge Expected in Hong Kong for 2025, Led by China & Middle East Deals

Due to secondary listings from the Middle East and Mainland China, as well as an IPO revival in Asia following a difficult couple of years, dealmakers anticipate that the value and volume of Hong Kong's IPOs will continue to improve in 2025.

In 2024, Hong Kong listings were dominated by initial public offerings (IPOs) of Mainland Chinese businesses, which accounted for 96% of proceeds, totaling $53.7 billion (US$6.9 billion) as of September 27, according to data from the London Stock Exchange Group.

Irene Chu, a partner and head of New Economy and Life Sciences at KPMG Hong Kong said,“We expect the trend will continue [to 2025] because there’s still a lot of upcoming mainland companies that are seeking IPO are expanding their businesses to overseas markets, Hong Kong would be an ideal location for them”

She pointed out that although the average deal size increased to $1.3 billion from $700 million last year, Hong Kong has only had 60 deals, less than 70 for the entire year of 2023. Chu anticipates Chinese businesses with international listings to make their homecoming listings in 2025.

On November 29, Hong Kong's benchmark Hang Seng Index closed at 19,423.61 points, over 13.9% from its close of 17,047.39 in 2023 and on track for its first annual increase since 2019.

The Saudi Exchange, Abu Dhabi Securities Exchange, and Dubai Financial Market have been recognized by Hong Kong's stock exchange, which has made it possible for their companies to seek for a secondary listing in the city, Chu added, making the Middle East a developing market for Hong Kong.