Industrial companies are expected to remain a major force in Hong Kong’s IPO market over the next two years, with more than 80 industrial and materials firms currently progressing through various stages of the listing process, according to PwC.The strong pipeline comes after industrials and materials accounted for 41 per cent of IPO funds raised in Hong Kong in 2025, making the sector the largest contributor by proceeds. Retail, consumer goods and services followed with 27 per cent, while information technology and telecommunications services accounted for 18 per cent.Major listings such as JD Industrials, Sany Heavy Industry and Dajin Heavy Industry underscored investor appetite for companies involved in advanced manufacturing, industrial technology and energy transition.Eddie Wong, capital markets leader at PwC Hong Kong. Photo: Handout“The Hong Kong IPO market remains vibrant and well-positioned to support a diverse range of sectors, including industrials, energy and innovative new economy companies,” says Eddie Wong, capital markets leader at PwC Hong Kong.In the first five months of 2026, information technology companies accounted for 65 per cent of IPO proceeds, followed by retail, consumer goods and services at 18 per cent, and industrials and materials at 12 per cent.Although IT has dominated the first half of 2026 on the back of the AI frenzy, the length of the industrial pipeline suggests this is a temporary rotation not a lasting retreat. Industrial issuers remain active, as mainland-listed companies use Hong Kong to raise capital for overseas expansion. A-share companies contributed US$12.5 billion of the US$21.3 billion raised in the city over the period.An energy storage project in Gansu province. Photo: NurPhoto via Getty ImagesRelaxed rules allowing smaller, innovative firms and issuers with weighted voting rights to broaden their secondary listing avenues have also reduced practical and regulatory barriers for overseas-listed companies seeking a Hong Kong listing.