The Hong Kong IPO market has shown remarkable momentum in the first quarter of 2025, recording a significant uptake in large IPO deals. Hong Kong IPOs raise nearly three times more funds in Q1 2025, marking the strongest start since 2021, according to KPMG's Chinese Mainland and Hong Kong IPO Markets 2025 Q1 Review. This strong performance builds on the influx of large IPOs completed in the late 2024 and has been further bolstered by the growing popularity of DeepSeek, which has shifted global investor interest towards Chinese Mainland tech companies.
The growing momentum is further reflected in the IPO pipeline, which now includes 120 applicants, up from 86 as at 31 December 2024. The uptick can be attributed to 51 companies submitting their first application during the quarter, up from 24 in the previous quarter. The “A+H” listing model has also gained traction, with one-fourth of those new applications coming from companies already listed on the A-share market.
The Hong Kong Stock Exchange recently reviewed its regulatory framework concerning the IPO price discovery process and open market requirements. Proposed measures aim to provide greater flexibility for companies in managing their capital structure and enhancing liquidity, particularly for those listing through the “A+H” listing model.
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