More companies, including some from Singapore, eye listings in Hong Kong

Straits Times

23-05-2025

More companies, including some from Singapore, eye listings in Hong Kong
SINGAPORE – Initial public offerings have rebounded in Hong Kong over the past year, with even some Singaporean fims opting to list there instead of their home exchange.
The shift follows a prolonged downturn in global IPO activity and comes as regional exchanges, including Singapore's, are stepping up efforts to attract listings and revitalise their equity markets.
Companies on the Hong Kong Stock Exchange have raised US$8.4 billion from 22 listings so far in 2025, a bourse spokesperson said, making the exchange the world's second-largest IPO fundraising market this year.
The bourse is reviewing around 150 IPO applications, while Deloitte expects 80 listings in Hong Kong this year, potentially raising about US$19 billion.
Singapore firms are among those expressing interest to list in Hong Kong.
One that has already taken the leap is biotech start-up Mirxes, which had previously considered listing in Singapore.
Shares of the A*Star spin-off closed their first day of trading in Hong Kong on May 23 at HK$30, up 28 per cent from its listing price of HK$23.30, and giving the company a market valuation of more than US$1 billion.
A Mirxes spokesperson told The Straits Times that the firm chose to list in Hong Kong 'because it has cultivated a strong ecosystem of investors who understand the biotech sector, including venture capital funds, private equity firms, cornerstone investors with healthcare expertise, and an increasing number of specialist biotech funds'.
It also has a dedicated biotech listing regime, the spokesperson said.
IFBH, which operates in Thailand but is incorporated in Singapore, submitted preliminary offer documents in April for listing in Hong Kong.
The firm, which bottles coconut water under the 'If' brand in Bangkok, had initially submitted a notification to the Singapore Exchange (SGX) for a proposed IPO in March 2024, but opted to list in Hong Kong instead.
IFBH noted that a Hong Kong listing better fits its business development strategy, given its strong connections to China, which is the company's largest market.
In July 2024, Metasurface Technologies Holdings, a Singapore precision machining and welding services provider, raised HK$65.3 million in a Hong Kong IPO. This was followed by Synagistics, a Singapore e-commerce solutions provider, which became the first company to list in Hong Kong via a merger with a special-purpose acquisition company.
Other notable IPOs in Hong Kong in 2025 include the US$5.3 billion listing of Chinese car battery manufacturer CATL – the largest listing globally this year – Chinese pharma giant Jiangsu Hengrui Pharmaceuticals, and bubble tea makers Mixue and Guming.
Mr Edward Au, Southern Region managing partner at Deloitte China, noted that the IPO momentum in 2025 has been driven by renewed global interest in China-related opportunities, particularly in the artificial intelligence and innovation sectors.
He noted that more than half the 150 Hong Kong IPO applications are from companies in technology, media and telecommunications, life sciences and healthcare.
Chinese investors have also increasingly participated in the market as they diversify their offshore investment portfolios, while 'relatively modest' IPO pricing has helped sustain investor demand.
At the same time, the Hong Kong dollar has also strengthened against the US dollar, encouraging further liquidity inflows.
As a result, the Hong Kong market has consistently recorded daily trading turnovers exceeding HK$200 billion, with market valuations rising to more than 13 times the average price-to-earnings ratio, Mr Au said.
Hong Kong has also made important reforms to its equities market that have elevated its appeal to issuers and investors.
The most recent developments include a scheme to help specialist technology and biotechnology firms list, reducing the minimum difference between the price buyers offer and what sellers want for a stock and revising the fees charged for trade settlements.
These initiatives have helped position Hong Kong as the second largest IPO market in the world in 2025, the bourse spokesperson said.
Mr Paul She, head of capital markets at Forvis Mazars in Hong Kong, noted that improved investor sentiment has also helped fuel renewed interest in Hong Kong listings.
'For much of 2023 and early 2024, the Hang Seng Index hovered around 16,0000 to 18,000 points, which dampened investor confidence. With the market now recovering to levels closer to 22,000 points, investor sentiment has improved significantly,' he noted.
Tighter regulatory conditions in China have also constrained IPO activity there, prompting many companies to consider Hong Kong as a viable alternative, Mr She added.
Ms Lorraine Tan, Morningstar's director of Asia equity research, noted that recent approvals by China's government for Chinese companies to list in Hong Kong had been stalled for some time, leading to pent up interest in these firms.
'This interest rose with the unveiling of DeepSeek and as the US market fell in February,' Ms Tan said.
She added that the availability of quality Chinese companies listing in Hong Kong, particularly those that are domestic consumer-focused and not directly sensitive to geopolitics, has helped lift investor interest.
'There is also hope that fiscal spending will continue to support the economy in China and mitigate trade war risks.'
Hong Kong's increasing attractiveness as a listing hub is making it more challenging for the SGX, which has been stepping up efforts to boost its own IPO pipeline.
Some, like Ms Tan, noted that Hong Kong is far ahead in the competition for IPOs: 'Hong Kong is a liquid and active market. Unfortunately, Singapore doesn't have the same liquidity, depth and breadth.'
The SGX needs to deepen its investor pool to support trading volumes in order to attract more listings, especially those now favouring Hong Kong, said Mr Ooi Chee Keong, head of capital markets at Forvis Mazars in Singapore.
'Valuation multiples on SGX are often lower than (Hong Kong) and Nasdaq, which discourages tech companies.'
He added that the SGX should identify specific industries or regions where Singapore holds a competitive edge and tailor its incentives to lure IPOs in those areas.
'Supporting local companies is also critical; when domestic firms hesitate to list, it sends a discouraging signal to international issuers.'
Ms Tay Hwee Ling, accounting and reporting assurance leader at Deloitte South-east Asia, noted that there have been concerted efforts by Singapore's regulators to strengthen the market's competitiveness and its attractiveness to investors and companies seeking to list.
'While the full impact of these new measures remains to be seen, we anticipate they will contribute positively to the growth of Singapore's capital markets,' she added.
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