TL;DR
Hong Kong’s IPO market surged in H1 2025, raising HKD 107.1 billion, a 695% increase from H1 2024, making it the world’s leading IPO venue. Despite this growth, legal and listing fees have decreased due to streamlined processes and relaxed regulations, intensifying competition among law firms. Law firms must focus on improving time and cost efficiency to stay competitive. Factify 2.0 offers AI-driven solutions to help firms reduce costs and optimize workflows. Explore the current IPO landscape and why Factify 2.0 is needed.
Explosive IPO Market Growth: Hong Kong Leads, Complexity Soars
The Hong Kong IPO market is experiencing unprecedented growth in 2025. H1 2025 saw HKD 107.1 billion raised, a 695% increase compared to H1 2024, with 229 new AI application submissions and 42 to successful IPOs. This places Hong Kong at the top in the size of the IPO market among the world’s leading IPO venues, but also means lawyers must manage larger, more complex deals under tighter timelines and expanded regulatory scrutiny, especially for cross-border listings.
Although the rebound in Hong Kong’s IPO activity points to renewed opportunities, the evolution of the listing regime—through simplified procedures and lighter regulatory requirements—has intensified competition among professional service providers. As a result, fees have not grown in proportion to the funds raised, reflecting that the market remains in a recovery phase rather than a full return to pre-downturn dynamics. To win mandates in this environment, law firms and other advisers have increasingly lowered or streamlined their fee structures, using more competitive pricing as a way to penetrate and secure market share, signaling that efficiency and value have become as critical as deal volume.
Shrinking Listing Fees Highlight Need for Efficiency
Since 2022, there has been a noticeable decline in the average legal and accounting fees paid per firm, as well as the overall proportion of legal and listing fees relative to the total funds raised on the Hong Kong Stock Exchange (HKEX). Specifically, the average legal and accounting fees decreased by HKD 18.6 million in 2025 compared to 2022, reflecting a significant reduction in costs. Similarly, the average total listing fees dropped by HKD 109.9 million in the same period.
( ‘Legal and accounting Fee’, ‘Listing Fee’ refers to an average of the legal fee and listing fee spent for the top 5 IPOs in 2025 and 2022, respectively)
This downward trend signals intensified competition among law firms in the IPO space. For law firms, this means that improving operational efficiency and managing costs have become essential to maintaining competitiveness. As the available fees become more limited, firms that leverage innovative solutions and optimize workflows will be better positioned to succeed in this increasingly cost-sensitive environment.
For IPO lawyers, this evolving landscape underscores the critical importance of adopting tools and technologies that enhance operational efficiency and cost management. Our regtech software, Factify 2.0, is designed to meet this need, offering streamlined solutions that help law firms reduce administrative burdens, optimize resource allocation, and maintain competitiveness in a cost-sensitive market.
How can Factify 2.0 boost cost efficiency for law firms?
The scale and urgency of these challenges and opportunities require a fundamental rethink of how IPO legal work should be delivered in Hong Kong. Factify 2.0, powered by AI, can help firms not just manage, but capitalize and take advantage of this new environment and optimize cost efficiency.
| Features | Benefits |
| Instant Generation of Document Requirements | Streamline your workflow with automatic, tailored document checklists, reducing preparation time and minimizing the risk of omissions critical to HKEX compliance. |
| Effortless Document Collection | Simplify collaboration by accelerating document gathering, lowering administrative burden and enabling more focus on substantive legal analysis. |
| Automated Verification Notes and Cross-Referencing | Enhance precision and save valuable time by automating the review and cross-referencing processes, supporting rigorous due diligence with consistent accuracy. |
| Disclosure Parsing into Structured Statements | Improve clarity and reduce drafting cycles by converting complex disclosures into organized, structured statements, facilitating smoother regulatory dialogue. |
| Version Control | Maintain audit-ready records with secure, organized version management that prevents errors from outdated documents and supports seamless team coordination. |
With multiple features that can address and mitigate the time-consuming manual tasks, complex document handling, and cross-jurisdictional challenges that burden IPO lawyers today, Factify 2.0 can significantly reduce cost and time inefficiencies. Factify 2.0 allows legal teams to reclaim valuable hours, improve accuracy, and focus on high-value, strategic work. Embrace Factify 2.0 to transform your IPO legal process and stay ahead in Hong Kong’s rapidly growing and demanding IPO market.
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