2024 Hong Kong Stock Underwriting Ranking

In 2024, the Federal Reserve entered a rate-cutting cycle, and the domestic timely introduced a series of heavyweight monetary policy support measures, boosting confidence in the Hong Kong stock secondary market; the Hang Seng Index rose by 17.67% for the whole year, the Hang Seng Tech Index rose by 18.70%, and the Hang Seng H-Share Index ETF rose by 26.37%. From the perspective of IPO financing, with the continuous optimization of the listing mechanism and the improvement of liquidity, the Hong Kong IPO market has seen a significant recovery, ranking fourth in IPO fundraising among global exchanges. At the same time, the Hong Kong Stock Exchange plans to lower the threshold for A+H listings, which will attract more mainland companies to list in Hong Kong for a second time. Data from the Wind database shows that the total equity financing amount in the primary market of the Hong Kong stock market in 2024 (including IPO and secondary offerings) was HK$175.2 billion, a 22.97% increase from HK$142.4 billion in 2023. In the new stock IPO market, 70 companies successfully IPOed in 2024 (not including GEM to main board listings), which was the same as in 2023; the IPO fundraising amount was HK$87.6 billion, a significant increase of 89.17% from 2023, mainly due to the mega IPO project of Midea Group Co., Ltd (00300), which raised HK$35.666 billion, contributing 40.70% of the total IPO amount in 2024. The total fundraising amount in the secondary offering market was HK$87.5 billion, a decrease of 8.94% from 2023. The largest secondary offering project was ALI HEALTH (00241), raising HK$11.512 billion. From the perspective of IPO underwriting and sponsorship, CICC ranked first with a sponsorship scale of HK$35.968 billion, followed by Merrill Lynch with HK$9.228 billion in second place and UBS with HK$4.278 billion in third place. In terms of the number of IPO sponsors, CICC took first place with 19 participated IPOs, CITIC SEC (HK) ranked second with 12 sponsorships, and Huatai Financial Holdings ranked third with 7 sponsorships. Overview of Hong Kong stock equity financing market 1.1 Trends in equity financing scale In 2024, the total amount of equity financing in the primary market of the Hong Kong stock market was HK$175.2 billion, a 22.97% increase from HK$142.4 billion in 2023. Among them, the IPO fundraising amount was HK$87.6 billion, a significant increase of 89.17% from 2023; the placement financing amount was HK$54.6 billion, a decrease of 17.47% from 2023; the rights issue financing scale grew significantly, raising a total of HK$19.4 billion, a 133.68% increase from 2023; the open offer financing scale was HK$13.3 billion, a decrease of 38.20% from 2023. 1.2 Distribution of financing methods In terms of specific financing methods, the IPO fundraising amount in 2024 was HK$87.65 billion, accounting for 50.04% of the total fundraising amount; the placement fundraising amount was HK$54.59 billion, accounting for 31.17%; the rights issue fundraising amount was HK$19.42 billion, accounting for 11.09%. 1.3 Distribution of financing subjects by industry In terms of the fundraising amount in each industry, the household appliances, non-ferrous metals, and software services industries ranked top three in fundraising amount in 2024, with fundraising amounts of HK$36.4 billion, HK$18.3 billion, and HK$14.1 billion, respectively. In terms of the number of fundraising events in various industries, the non-banking financial industry ranked first with 40 fundraising events, the media industry ranked second with 39 fundraising events, and the software services and construction industries both had 33 fundraising events, tied for third place. Initial Public Offering (IPO) Section 2.1 Trends in the number of IPO issuances The number of IPO issuances in the Hong Kong stock market in 2024 was 70, the same as in 2023. In terms of quarters, the fourth quarter had the most IPOs, with a total of 25 companies successfully IPOing. 2.2 Trends in IPO fundraising amount The total IPO fundraising amount in 2024 was HK$87.6 billion, an 89.17% increase from HK$46.3 billion in 2023, with the third quarter contributing HK$42.2 billion, accounting for 48.17% of the total IPO fundraising amount for the year, mainly due to the mega IPO of Midea Group Co., Ltd (00300). 2.3 Distribution of IPO listing boards In terms of IPO listing boards, a total of 70 companies successfully issued IPOs on the main board in Hong Kong in 2024 (excluding GEM to main board companies), and 3 companies successfully issued IPOs on the Growth Enterprise Market (GEM). 2.4 Distribution of IPO subjects by industry In terms of the fundraising amount from IPOs in various industries, the household appliances industry had the highest fundraising amount, totaling HK$35.7 billion; followed by the transportation industry, with a fundraising amount of HK$8.5 billion; and the hardware equipment industry ranked third, with a fundraising amount of HK$7.9 billion. In terms of the number of IPOs by industry, the software and services industry had a total of 11 IPOs, ranking first; the pharmaceutical and biotechnology industry had 6 IPOs, ranking second; the construction and transportation industries both had 5 IPOs, tied for third place. 2.5 Top 10 IPO Fundraising Amounts In 2024, the company with the highest IPO fundraising amount was Midea Group Co., Ltd, raising an amount of HK$35.666 billion; Horizon Robotics and S.F. Holding ranked second and third, with fundraising amounts of HK$6.087 billion and HK$5.831 billion respectively. The top ten IPO projects raised a total of HK$63.486 billion, accounting for 72.43% of the total IPO fundraising amount. 2.6 Statistics on IPO fundraising amount ranges In 2024, the number of IPOs in the Hong Kong stock market with fundraising amounts of less than HK$1 billion was the highest, at 56 companies, accounting for 80% of the total IPOs; the second-highest number was in the HK$1-2 billion fundraising range, with 8 companies; only 1 IPO had a fundraising amount exceeding HK$4 billion. Follow-on Offering Section 3.1 Trends in secondary offerings In 2024, the total amount raised in secondary offerings was [missing in translation].875 billion Hong Kong dollars, slightly down 8.95% compared to 961 billion Hong Kong dollars in 2023. The number of refinancing projects is 404, slightly up 15.76% from 349 in 2023.3.2 Sector Distribution of Refinancing Entities In terms of the amount of refinancing in each industry, the sector with the highest refinancing amount is non-ferrous metals, with an amount of 18.3 billion Hong Kong dollars, mainly from MMG's rights issue, with a financing scale of 9.079 billion Hong Kong dollars. The daily consumer retail industry ranks second with a fundraising amount of 12.7 billion Hong Kong dollars, mainly from ALI HEALTH's 11.512 billion Hong Kong dollars in financing. The pharmaceutical and biotechnology industry ranks third with a financing amount of 8 billion Hong Kong dollars. In terms of the number of refinancing projects in each industry, the non-bank financial sector has 39 refinancing projects, ranking first; the media industry ranks second with 36 projects; and the textile and apparel industry ranks third with 29 projects. 3.3 Top 10 Refinancing Projects The enterprise with the highest amount of refinancing funds is ALI HEALTH, with a fundraising amount of 11.512 billion Hong Kong dollars, accounting for 13.15% of the total refinancing scale in 2024. MMG ranks second with a fundraising scale of 9.079 billion Hong Kong dollars, and CHINA RES POWER ranks third with a fundraising scale of 7.222 billion Hong Kong dollars. Institution Section 4.1 IPO Sponsorship Scale Ranking CICC, as a sponsor, participated in 19 IPOs with a sponsorship scale of approximately 35.968 billion Hong Kong dollars, ranking first in the sponsorship scale ranking. Merrill Lynch ranks second with a sponsorship scale of 9.228 billion Hong Kong dollars and 2 sponsored IPOs. UBS ranks third with a sponsorship scale of 4.278 billion Hong Kong dollars and 3 sponsored IPOs. 4.2 IPO Sponsorship Number Ranking CICC, as a sponsor, participated in 19 IPOs, ranking first. CITIC SEC (Hong Kong) sponsored 12 IPOs, ranking second, and Huatai Financial sponsored 7 IPOs, ranking third. 4.3 Global IPO Coordinator Ranking CICC, as a global coordinator, participated in 24 IPOs, ranking first in the global coordinator ranking. CITIC SEC participated in 21 IPOs, ranking second, and Zhongyuan International participated in 18 IPOs, ranking third. (Continued...)