Momentum in Hong Kong’s follow-on fundraising market set to continue: senior bankers

The amount raised using follow-on offerings – including share placements and equity-linked debt issuances like convertible bonds after IPOs – reached US$31.4 billion in the first half of this year, according to data compiled by Dealogic. The full-year figure for 2024 was US$27.9 billion and the record was US$83.9 billion, set in 2021.

A growing number of listed companies, seeking to expand their businesses and fund research and development (R&D), combined for a positive outlook for capital markets, bankers said.

“Hong Kong’s role as a gateway for Chinese technology, media and telecoms (TMT) and industrial companies to access global capital, particularly amid a complicated geopolitical landscape”, was a key factor that drove companies to seek follow-on offerings, added Leung, who also serves as Goldman’s co-chief operating officer of the TMT group for Asia, excluding Japan.