Since 2022, the Hong Kong IPO market has gone from overheated to ice cold. While 2024 didn’t bring a full recovery, it marked the beginning of a shift: top-tier companies returned to the spotlight, certain sectors regained investor interest, and the IPO landscape began to show early signs of structural improvement. By early 2025, several encouraging signals have emerged—consumer brands and biotech firms are drawing capital, and the once-common debut-day slump is no longer the norm. Investor risk appetite is gradually recovering.
Although the number of IPOs has dropped—just 70 companies listed in 2024—the quality has improved. The market has become more selective, with a clear tilt toward consumer chains, biotech innovators, and advanced manufacturing, while platform and B2B software plays have retreated. By early 2025, 20 companies had already gone public, with some high-profile names like $MIXUE GROUP(02097)$ and $DUALITYBIO-B(09606)$ achieving triple-digit gains on debut, pointing to a renewed focus on fundamentals rather than hype.
In contrast to past years when oversubscription seemed to guarantee strong returns, 2024 saw high-profile IPOs break down immediately despite huge investor demand. Cases like $HERBS GROUP(02593)$ made clear that valuation discipline has returned: without strong earnings or clear growth visibility, even well-known names can fall flat. Interestingly, smaller and less-hyped companies—like $LAOPU GOLD(06181)$ —outperformed dramatically, proving that clarity of business model and profit potential now matter more than ever.
Sector-wise, consumer chain brands have dominated the IPO narrative, with names like $MIXUE GROUP(02097)$ , $GUMING(01364)$ , and $AUNTEA JENNY(02589)$ consistently outperforming. Their standardized operations, clear scalability, and brand strength make them attractive to investors. Biotech, on the other hand, saw a sharp divide. While speculative pipeline-only firms were punished in 2024, companies with tangible clinical progress and commercialization potential have bounced back in 2025, suggesting a maturing of investor expectations in the space.
Broadly speaking, Hong Kong IPOs are evolving from simple fundraising vehicles to genuine value-delivery platforms. Investors are no longer willing to buy into promises—they want earnings visibility, viable technology paths, and long-term survivability. This change is forcing underwriters to be more selective and compelling startups to truly withstand the scrutiny of both market and regulators before going public.
Looking ahead, the second half of 2025 could bring more high-quality listings, especially as macro conditions stabilize and Hong Kong’s valuation appeal draws back capital. Sectors like AI applications, late-stage biotech, and next-gen energy manufacturing may lead the next wave. For investors, IPOs are no longer quick-win bets—they’ve become a test of insight, timing, and the ability to read the fundamentals.
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