Hong Kong Exchanges & Clearing Ltd, the world's largest exchange operator by market value, does not expect its bottom line to be hit by a drop in its initial public offers pipeline, its chairman said on Wednesday. Hong Kong, the top global destination for initial public offerings for two years running, has seen a surge in IPO applications.
"The fees we charge on IPOs are not really that significant. It's more based on our daily turnover, based on other income streams that we have. Clearly it does affect our revenue a bit but it will not be material," Chairman Ronald Arculli told Reuters in Johannesburg on the sidelines of the annual gathering of the World Federation of Exchanges.
The former British colony had a pipeline of 115 companies with active IPO applications in 2011 through the end of August, 35 percent more than the same period in 2010, according to exchange data.
The figure reflects the number of companies that received approval from the Hong Kong exchange's listing committee, but still have not sold shares.
Arculli also said he did not expect a flurry of large, international exchange mergers in the near future similar to the tie-up between the Deutsche Bourse and the NYSE Euronext.
Up to end of August, the exchange had done about $24 billion worth of IPOs, Arculli said. A number of applications were still pending and market volatility had caused a delay for some listings going ahead, he said.
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