India’s Oldest Fund to Boost IPO Flow as Holders Exit
UTI Mutual Fund is set to go public next year after some of its shareholders came under regulatory pressure to cut stakes.
(Bloomberg) -- UTI Asset Management Co., India’s oldest mutual fund, is set to go public next year after some of its shareholders came under regulatory pressure to cut stakes.
Life Insurance Corp., State Bank of India and Bank of Baroda must reduce their stakes in UTI Asset by the end of 2020, the country’s market regulator said in a Dec. 6 statement. The order stems from a cross-holding limit in mutual funds to avoid potential conflicts of interest.
Existing shares continue to drive the Indian IPO market, where deal value has dropped to a four-year low. Initial sales have raised $2.7 billion in India this year, with existing shares accounting for about half of the value, according to data compiled by Bloomberg.
State Bank of India and private-equity firm Carlyle Group also plan to sell shares in a listing of the lender’s credit card unit, which could raise more than $1 billion.
The offering of existing shares play a minor role in most other Asian markets. China has virtually no secondary shares in IPOs, while existing equity accounts for only 3% of Hong Kong’s $37.5 billion deal value this year, data compiled by Bloomberg show.
UTI selected investment banks to arrange a sale which could raise about 26 billion rupees ($367 million), people with knowledge of the matter said in October. The asset manager plans to launch the offering of about 40 billion rupees in the first quarter of 2020, IFR Asia reported last week.
UPCOMING LISTINGS:
- Alphamab Oncology
- Hong Kong exchange
- Size $234m
- Listing Dec. 12
- Morgan Stanley, Jefferies, CLSA
- Renrui Human Resources Technology
- Hong Kong exchange
- Size $129m
- Listing Dec. 13
- BNP Paribas
- Bangkok Commercial Asset Management
- Thailand stock exchange
- Size $869m
- Listing Dec. 16
- Trinity Securities, Kasikorn Securities, UBS
- OneConnect Financial Technology
- New York Stock Exchange
- Size up to $504m
- Pricing Dec. 12
- Morgan Stanley, Goldman Sachs, JPMorgan, Ping An of China Securities
- CABIO Biotech Wuhan
- Shanghai Star board
- Size $106m
- Taking orders Dec. 10; listing TBA
- Guotai Junan Securities
More ECM situations we are following:
- Biggest Philippine steelmaker SteelAsia Manufacturing is looking to go public within two years to raise funds for expansion: Philippine Star
- Poly Property Development’s Hong Kong IPO retail portion is 60 times oversubscribed, Hong Kong Economic Times reports, citing data from 8 brokerage firms
- Alphamab Oncology will trade in gray market Wednesday after raising $234m in Hong Kong
- Midea Real Estate raised $98m selling shares in Hong Kong at 6.8% discount to Tuesday close
- Liquid detergent maker Blue Moon is considering a Hong Kong IPO next year that could raise ~$400m: IFR Asia
- Centuria Metropolitan REIT raised A$185m in a placement to fund the purchase of an office building
SEE ALSO:
- Asia ECM Weekly Agenda
- IPO data
- U.S. ECM Watch
- EU ECM Watch
- To receive the ECM Watch in your inbox daily, click the “subscribe” button at the top of this article
--With assistance from Baiju Kalesh.
To contact the reporter on this story: Fox Hu in Hong Kong at fhu7@bloomberg.net
To contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Naoto Hosoda
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