2025 Hong Kong IPO Outlook

By Constance Zhang, Account Director, SEC Newgate Greater China

3 April 2025

Hong Kong’s initial public offering (IPO) market has got off to a strong start in the first quarter of the year, with fundraising volume reaching US$2.3 billion, nearly four times more than in the same period last year. Is this the start of an IPO bonanza and the return of the Hong Kong Stock Exchange (HKEX) as a top fundraising venue?

Since the start of the year, we have witnessed the listings of toymaker Bloks (US$188 million), Chinese bubble tea chain Mixue (US$205.9 million) and SF Holding (US$749 million). Next up is Chinese equipment manufacturer Sany Heavy Industry, which is planning to raise an estimated US$1.5 billion in a secondary listing in Hong Kong later this year.

Regulatory support from Chinese mainland and Hong Kong authorities and continuing US-Sino tensions have acted as catalysts, making Hong Kong an increasingly attractive exchange for Chinese companies seeking an alternative fundraising venue to US markets.

Underscoring the favourable regulatory backdrop, in the first half of 2024, the China Securities Regulatory Commission (CSRC) actively encouraged leading Chinese mainland companies to prioritise Hong Kong as their overseas listing venue. Subsequently, Chinese electrical appliance manufacturer Midea Group launched its US$4.6 billion mega IPO.

In late 2024, the Hong Kong Securities and Futures Commission (SFC) and HKEX jointly announced an enhanced timeframe for the new listing application process, including an accelerated timeframe for eligible Chinese (or A-share) listed companies with an expected minimum market capitalisation of HK$10 billion (US$1.29 billion).

This development is bearing fruit, with Shenzhen listed Chinese battery giant CATL – with a market cap of over HK$1.2 trillion (US$155 billion) – receiving the green light for its Hong Kong IPO in February, paving the way for what some believe will be the largest listing the city has seen in four years at a predicted US$5 billion.

Hong Kong’s courting of mainland-based companies is driving many to consider a dual listing. The ability to raise capital overseas to support long-term globalisation strategies has become a major driver for large A-share-listed companies.

Leveraging Hong Kong’s deep international investor base, the “A+H” listing model has emerged as a key driving force in the city’s IPO market, resulting in a surge of listing applications from Chinese mainland enterprises.

Leading the “A+H” listings have been industry giants, like Midea Group, seeking offshore financing to expand their international business operations. This structure not only provides diversified investment options, but also helps companies access long-term institutional capital, optimise shareholder structures and enhance corporate governance while further integrating into global markets.

Looking ahead, we are highly optimistic about Hong Kong’s IPO market. Our confidence is backed by a Deloitte report, which forecasts that Hong Kong will see around 80 IPOs in 2025 with estimated proceeds of between US$16.7 billion to US$19.3 billion.

While calling a full-fledged “bonanza” may be premature, we expect a surge in listings from A-share issuers, leading Chinese “unicorns”, US-listed China concept stocks and overseas companies, with the hot industries likely to be technology, life sciences and healthcare, and consumer.

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About SEC Newgate’s IPO offer

SEC Newgate Greater China advises companies on strategic and investor communications pre, during and post IPO. Our services cover pre-IPO readiness, investment proposition development, branding, media strategy and training, media relations, analyst and investor mapping, executive visibility, crisis and issues planning and management, market and data intelligence, content production, social media management and monitoring.

For more information, contact IPO@secnewgate.hk