Since 1 January 2021, 104 Hong Kong-based companies have pursued initial public offerings (IPOs) on United States stock exchanges, navigating a complex environment shaped by regulatory scrutiny, market volatility, and global economic dynamics. We explore the insights that characterize this cross-border financial landscape, shedding light on Hong Kong’s role in global IPO activity.
Figure 1 – Hong Kong-based Companies applying IPO in U.S. by Year (Source: S&P Capital IQ Pro)
The above figure shows the distribution of Hong Kong-based companies that pursued U.S. IPOs from 2021 to May 2025. In 2022, there were only 9 IPOs, with activity peaking in 2023 (24 IPOs) and 2024 (37 IPOs), and showing a steady pipeline in May 2025 with 13 IPOs.
Among the 104 companies, 59 of them have completed, 33 of them have been announced, and 12 of them have been terminated or withdrawn as of 12 May 2025. Figure 2 shows the distribution of the IPO status. The IPO completion rate is around 55% during the period.
Figure 2 – IPO Status (Source: S&P Capital IQ Pro)
Figure 3 reveals a diverse sectoral landscape among the 59 completed IPOs as of 12 May 2025, with classification across 9 industries. Financials lead with 21 companies, exemplified by firms like Waton Financial Limited (NASDAQCM:WTF) with a market capitalization of HKD2,867.92 miliion, reflecting a strong presence of banking, investment, and financial services firms seeking U.S. capital. Industrials follow with 17 companies, with notable participants such as Skyline Builders Group Holding Limited (NASDAQCM:SKBL) with a market capitalization of HKD3,205.40 million, indicating significant activity in manufacturing, construction, and logistics. Consumer discretionary accounts for 7 companies, covering retail and leisure sectors, while information technology and communication services each contribute 5, showcasing growth in tech and media ventures. Materials, healthcare, real estate, and consumer staples are underrepresented, each with 1 company, suggesting emerging participation. Among these sectors, Regencell Bioscience Holdings Limited (NASDAQCM:RGC) had the largest market capitalization of HKD47,659.24 million. This sectoral distribution underscores a dominant financial and industrial focus, with gradual diversification into technology and consumer-driven industries.
Figure 3 – Sectors among completed IPOs (Source: S&P Capital IQ Pro)
Hong Kong-based companies pursuing U.S. IPOs have primarily targeted three major exchanges, namely the Nasdaq Capital Market (NASDAQCM), the NASDAQ Global Market (NASDAQGM), and the New York Stock Exchange (NYSE). Each of them offers distinct advantages based on company size, financial maturity, and market objectives.
NASDAQCM is designed for smaller, early-stage companies focused on raising capital and has the least stringent listing requirements among the three. NASDAQGM is a mid-tier level that targets companies with international reach, requiring more stringent financials than NASDAQCM. NYSE has the strictest listing requirements, such as higher market capitalization and income thresholds, reflecting its preference for established, blue-chip firms and stability-focused industries.
For the exchange preferences, the dominant choice was NASDAQCM, favoured by small-sized companies, with 88 attempts (84%). The other two are NASDAQGM with 6 attempts (6%) and NYSE with 10 attempts (10%) during the period. Figure 4 shows the distribution by exchanges.
Figure 4 – Exchange Preference (Source: S&P Capital IQ Pro)
In conclusion, the pursuit of U.S. IPOs by 104 Hong Kong-based companies from 2021 to May 2025 reflects a resilient yet adaptive engagement with global capital markets, shaped by market fluctuations and economic dynamics. This cross-border financial activity underscores Hong Kong’s role as a gateway for Asian firms aiming to bridge Eastern innovation with Western markets, fostering a dynamic exchange of capital and ideas. As these companies adapt to shifting market realities, their experiences offer valuable lessons for other emerging market companies eyeing international listings.
At BonVision International Appraisals Limited, we specialize in providing high-quality valuation and advisory services to clients, both private and listed, across a wide range of industries including but not limited to finance, technology, real estate, media and telecommunications (TMT), biotechnology, trading, manufacturing, and energy etc. As Hong Kong-based companies continue to navigate the complexities of U.S. IPOs, we stand ready to provide valuation expertise tailored to those companies in IPO or pre-IPO stage. We possess extensive experience in valuation projects involving U.S.-listed clients, further strengthening our ability to support cross-border listings. We offer comprehensive valuation services that ensure fair and accurate assessments, helping companies attract global investors. Our team’s rigorous analysis of market trends, regulatory requirements, and sector-specific dynamics equips clients with the insights needed to enhance credibility and to pursue their true value.
*The data is extracted as of 12 May 2025.