Ann: Proposed IPO of China Subsidiary in Hong Kong, page-325

Hong Kong's IPO market is headed for a banner 2018

• Hong Kong is on track to top the global IPO market in 2018, according to KPMG.
• The financial services giant expects new listings to total more than 300 billion Hong Kong dollars ($38.4 billion) by the end of the year...
• https://www.cnbc.com/2018/09/24/hong-kong-is-set-to-top-global-ipo-market-in-2018-kpmg.html

Isaac Lawrence | AFP | Getty Images
Xiaomi founder, chairman and CEO Lei Jun hits a gong at the company's initial public offering launch on the Hong Kong Stock Exchange on July 9, 2018.
.

..Hong Kong's booming initial public offering market appears set to close out the year on a strong note....

"Following a strong third quarter, KPMG forecasts total IPO fundraising in Hong Kong to reach more than HKD 300 billion ($38.4 billion)," the consultancy said in its quarterly IPO review for Hong Kong and the Chinese mainland published last week.

That means Hong Kong should finish 2018 as the world's top market for new listings, KPMG said.
Such an annual total would be nearly triple the 122.6 billion Hong Kong dollars recorded last year.
IPOs are also set to rake in HK$190 billion in the third quarter, according to its estimate. For the first nine months of the year, the total is estimated at HK$238.2 billion.

KPMG said its figures were based on data as of Sept. 14 and its own estimates.

'New economy'

China Tower's HK$54.3 billion IPO was the third quarter's biggest deal, and listings from so-called new economy companies contributed almost half of the funds raised in the quarter, KPMG said.

"New economy" refers to sectors based on technology and the internet, including e-commerce, payments and other kinds of tech companies. Hong Kong introduced new rules designed to attract tech companies by allowing dual-class share structures with weighted voting rights and biotech companies yet to make profits.

"Our analysis also highlights that the new listing regime for companies from emerging and innovative sectors is transforming the Hong Kong bourse into a hub for 'new economy' companies," KPMG said.

KPMG said that three "pre-revenue" companies in the biotech sector and two with weighted voting rights wrapped up IPOs in the first nine months of the year.

"We expect to see six to 10 pre-revenue biotech companies list by the end of 2018 as the trend continues," it said...
.