Hong Kong's IPO market babies raised HK$8.11b

But deal flow and volume declined.

According to Deloitte, the sentiment of the initial public offering (IPO) market of Hong Kong continued to improve in the first quarter of 2013, according to an analysis of the National Public Offering Group of Deloitte China. 

On the other hand, the A-share IPO market remained static with no new listing, as a result of the special self-inspection on the financials of IPO applicants since 28 December 2012.

Though Hong Kong saw both reduced deal flow and volume with its IPOs, its position as the fundraising hub of Mainland companies continued to bolster.

Here's more from Deloitte:

As at 31 March 2013, 11 companies were newly listed in Hong Kong raising aggregate funds of HK$8.11 billion, 39% and 17% down respectively against the same period of last year.

However, approximately 84% of the total IPO proceeds came from Mainland companies (HK$6.82 billion), a jump of about 42 percentage points in contrast to over 42% of last year.

Performances of various indicators also point to a recovery in market sentiment, which is conducive in driving potential issuers to launch their IPOs in Hong Kong later this year.

Nearly all of the IPOs were priced above mid-point and more than one-third of them even priced at the top of the indicative range.

Furthermore, all IPOs were over-subscribed and their average first-day return improved by 13.38% to 21.48%. The average deal size for new listings at the Main Board has expanded by 30% from HK$686.25 million last year to HK$894.33 million.