Asia’s IPO Market Hasn’t Been This Hot Since 2007

(Bloomberg) -- Companies are raising money in Asian Pacific equity markets at the fastest pace since the global financial crisis.

Just 15 days into the new year, initial share sales have reached $5.9 billion, the most since 2007 for the period, according to data compiled by Bloomberg. Chinese companies are leading the fundraising, accounting for 97% of the proceeds raised, the data show.

The Chinese dominance is no surprise with Beijing-Shanghai High Speed Railway Co. clinching the biggest deal in Asia this year, raising $4.3 billion on the mainland.

Alibaba Group Holding Ltd.’s second listing in Hong Kong last year has set the stage for other Chinese companies that are considering doing the same, which bodes well for the APAC IPO volume this year. The ecommerce giant’s Hong Kong shares have surged about 25% since its listing in November.

At the end of last year, the Hong Kong bourse saw a spike in inquires by Chinese companies listed elsewhere. Trip.com Group Ltd. and Netease Inc., both of which are trading on the Nasdaq, are said to be in preliminary discussions with the exchange for a potential second listing in Hong Kong. A secondary listing is seen as a hedge by Chinese companies listed in the U.S., as Trump administration officials are looking at various ways to curb their access to American funding.

There are 196 Chinese companies listed on major U.S. exchanges with a combined market value of $1.2 trillion, according to Bloomberg-compiled Data. Among these firms, BeiGene Ltd. and Alibaba are the only two with a second listing in Hong Kong.

UPCOMING LISTINGS:

• Central Retail Corp
  • Thailand stock exchange
  • Size up to $2.65b
  • Pricing date TBD
  • Bualang Securities, Phatra Securities, Credit Suisse, Morgan Stanley, UBS
• I-Mab Biopharma
  • Nasdaq exchange
  • Size up to $111m
  • Pricing Jan. 16
  • Jefferies, CICC
• Phoenix Tree Holdings
  • New York Stock Exchange
  • Size up to $175m
  • Pricing Jan. 16
  • Citi, Credit Suisse, JPMorgan

• Shenzhen Leoking Environmental Group

  • Hong Kong exchange
  • Pre-marketing started Dec. 18
  • CLSA sole sponsor
• Mr D.I.Y Group
  • Bursa Malaysia
  • Size up to $500m
  • Pricing date TBD
  • CIMB, Maybank
• Lvji Technology Holdings Inc
  • Hong Kong exchange
  • Size $96m
  • Listing Jan. 17
  • BOCI, CCB International, CMBC Securities, Fosun Hani Securities

More ECM situations we are following:

• Kerry’s Thai United has confirmed that is is planning an initial public offering to raise funds to accelerate investment needed to meet surging demand generated by ecommerce sales.
• Restaurant operator Jiumaojiu jumped 56% on it debut, the best performing IPO in Hong Kong this year.

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 Irene Huang and Julia Fioretti.

To contact the reporter on this story: Zhen Hao Toh in Singapore at ztoh4@bloomberg.net

To contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Naoto Hosoda

©2020 Bloomberg L.P.