HK ranking dips on poor IPO scene

Hong Kong's initial public offering market may record its worst performance since 2009, dragging the city down to the world's No. 4 by the amount of proceeds raised although its IPO market is seen to rebound in 2013, a report said yesterday.

The Hong Kong stock exchange may see 62 new listings in 2012, raising a total of HK$89.4 billion (US$11.5 billion), a 67 percent plunge from last year's HK$271.4 billion, due to a global economic slowdown and poor market sentiment, Deloitte Touche Tohmatsu said in the report.

The funds raised marked the most lackluster performance since 2009 and toppled Hong Kong as a listing venue from top place to fourth, trailing Nasdaq, New York Stock Exchange, and Tokyo Stock Exchange, said Dick Kay, a partner of Deloitte China's Public Offering Group.

But Deloitte sees Hong Kong's IPO market to rebound mildly in 2013 with 70 to 80 listings raising HK$100 billion to HK$150 billion amid the economic stimulus of the US Federal Reserve and the European Central Bank.