Ashurst: Only Half of Hong Kong IPO Applications to be Priced
Hong Kong's stock market is expected to see approvals slow, according to Ashurst partner Frank Bi, as regulators discourage certain listings, like smaller-cap companies.
Hong Kong is expected to see approximately 100 new listings in the first half of 2026 with $10 billion in total funds raised, according to a note authored by Frank Bi, Asia head of corporate transactions at London-headquartered law firm Ashurst.
Bi estimates that only about half of the 400 active IPO applications, excluding confidential filings, will successfully price. This is due to stricter guidelines from the Securities and Futures Commission, which includes limiting each signing principal to supervise or participate in a maximum of five IPOs simultaneously, down from 10 to 20 or more previously.
Market Shifts But Fundraising Still Strong
As a result of tightening, major investment banks are anticipated to be selective and favor larger, high-profile projects, while small and mid-cap deals will be funnelled to boutique and smaller banks. Despite the shift, Bi notes that this is unlikely to dampen aggregate fundraising, as the «stricter capacity limits inherently push sponsors toward higher-quality, larger-cap companies».
«During periods of instability, capital would look for safe, highly liquid jurisdictions. Beyond standard southbound capital flows, rising foreign investor confidence is beginning to fuel a broader recovery in both IPOs and ECM markets,» Bi added.
