Hong Kong's stock market will probably notch up another record year of IPOs in 2006, with nearly $26 billion in deals, PricewaterhouseCoopers forecast on Thursday, partly thanks to huge share sales by Chinese banks.
The consultants said next year's initial public offerings would beat the almost $25 billion raised by 67 companies in 2005 -- when the value of Hong Kong IPOs soared 45 percent over the previous record set in 2000.
Around 80 percent of capital raised in IPOs in the territory in 2005 was by mainland Chinese firms.
The Hong Kong market almost reached the $26.8 billion raised by 329 British IPOs in 2005, according to market data firm Dealogic. IPOs raised $63.4 billion in the United States, 18.2 billion in France and $11 billion in Japan.
"The Hong Kong IPO market will continue to be fuelled by China's booming economy and appetite for funds," Richard Sun, a partner in PricewaterhouseCooper's capital markets group said in a statement.
"There is a strong pipeline of companies with strong financials and including mainland-based financial services companies and logistics companies that are ready to come to market."
Bank of China and Industrial & Commercial Bank of China are waiting in the wings with deals of similar size to the $9.2 billion listing of China Construction Bank in October, the biggest IPO in more than four years.
Among other big deals in Hong Kong in 2005 was the $2.5 billion Link REIT listing in late November -- the biggest IPO for a property trust.
Bankers expect more property trusts to list in 2006 and also a vibrant mix of stock Chinese stock offerings in the $200 million to $1 billion range.
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