India’s IPO Market Desperately Needs Some Mega Deals: ECM Watch
India may need a savior for its initial public offering market, with proceeds raised since January falling to a five-year low.
(Bloomberg) -- India may need a savior for its initial public offering market, with proceeds raised since January falling to a five-year low.
The eight companies that have listed in 2020 have raised just $7.3 million, according to data compiled by Bloomberg. Their deal size has been tiny -- $900,000 on average, with Hindprakash Industries Ltd.’s $1.6 million share sale being the largest. Their performance has also been far from stellar as their shares have climbed 1.8% on average, weighed by offer size, compared with a 5% advance in the MSCI India Small Cap Index through the last close.
The coronavirus outbreak has thrown a spanner in IPO works in India, as investors grapple with the market uncertainty that comes with it, said Pranav Haldea, a managing director at Prime Database Group, a capital-market database provider. “Certain issuers have adopted a wait-and-watch approach to see if the budget announcement of Feb. 1 has any major impact on their business.”
On the bright side, a series of billion-dollar initial share sales are in the pipeline. The most high-profile deal is the privatization of state-run behemoth Life Insurance Corp. of India, which could fetch as much as 900 billion rupees ($12.6 billion). Then there’s Tower Infrastructure Trust, which filed for an IPO of as much as $3.5 billion, and SBI Cards and Payment Services Ltd., backed by State Bank of India and Carlyle Group, which is targeting a listing of about $1.3 billion.
UPCOMING LISTINGS:
- Central Retail
- Thailand stock exchange
- Size $2.5b
- Listing Feb. 20
- Bualuang Securities, Phatra Securities, Credit Suisse, Morgan Stanley, UBS
- Champ Resto Indonesia
- Indonesia stock exchange
- Size about $150m
- Pre-marketing started Jan. 31
- CLSA
- Mr D.I.Y. Group
- Bursa Malaysia
- Size up to $500m
- Pricing date TBD
- CIMB, Maybank
More ECM situations we are following:
- Warburg Pincus is meeting banks to manage an IPO of about $500 million for the Philippines’ Converge ICT Solutions, IFR reported, citing unidentified people with knowledge of the plan.
- SBI Cards and Payment Services is targeting a launch in early March for its 90 billion rupee initial share sale, the Mint newspaper reported, citing two people aware of the development.
- HKEX has approved the Shanghai listing of China Railway Construction’s spin-off unit.
- Hygeia Healthcare Holdings, the largest oncology health-care group in China, has applied for a Hong Kong IPO.
SEE ALSO:
- Asia ECM Weekly Agenda
- IPO data
- U.S. ECM Watch
- EU ECM Watch
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To contact the reporters on this story: Zhen Hao Toh in Singapore at ztoh4@bloomberg.net;Baiju Kalesh in Mumbai at bkalesh@bloomberg.net
To contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Cecile Vannucci
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