HONG KONG: Hong Kong’s IPO market is making a huge comeback. Defying the intensifying protests that have hurt the city’s economy from trade to tourism, Hong Kong’s has led the world in initial public offerings since the start of September.
“The market has been volatile and challenging this year but we are now in a good window for IPOs in Hong Kong, ” said Alex Abagian, co-head of Asia Pacific equity capital markets at Morgan Stanley. Sentiment in Hong Kong’s primary market turned around as AB InBev revived its IPO plan for Budweiser Brewing Company APAC Ltd last month. The world’s second-largest offering this year attracted Singapore’s sovereign fund GIC Pte Ltd, which committed US$1 billion.
The rejuvenated momentum is also evident among the retail investors in the city. Some small-cap IPOs saw heavy over-subscriptions and frenzied trading in their debuts.