bloomberg.com
Julia Fioretti, Filipe Pacheco, Pei Li
6-7 minutes
The epicenter of global initial public offering activity has shifted east to China as waves of volatility and slumping stock markets have sent virtually all sizable listings in the US into limbo.
Stock listings in Asia have raised $104 billion this year, accounting for a record 68% of global volume, data compiled by Bloomberg show. By contrast, US IPOs represent just 14% of the $153 billion fetched globally, the lowest ever for what has traditionally been the busiest listings market in the world.
IPOs in Asia account for highest percentage of global volumes on record
The strong Asian showing is mostly down to Chinese IPOs, which have continued to come thick and fast even as rising interest rates and the prospect of a recession put a lid on first-time share sales in most major markets. Of the 10 largest listings globally this year, six were from Chinese companies either on mainland exchanges -- the so-called A-share market -- or in Hong Kong, the data show.
“In 2022, as the world deals with inflation and global tensions, the IPO epicenter in terms of volume has shifted east,” said James Wang, co-head of ECM at Goldman Sachs Group Inc, in Asia ex-Japan. “The continuity of such appears sustainable for the time being given some sizable Hong Kong IPOs are lined up to potentially test markets before year end.”
In the US, which accounted for more than half of last year’s record $657 billion of IPO proceeds, the market has come to a sudden halt as inflation fears and heightened volatility keep valuations depressed and cause investors to steer clear of the high-growth companies that typically dominate IPO activity.
The unwelcoming market conditions have forced highly anticipated listings like Mobileye NV and Chobani Inc. to be pushed back or scrapped altogether. Until this week, there had been just one billion-dollar plus offering in New York this year, that of private equity firm TPG Inc. In Asia there have been 12, while the Middle East has had four.
“We’re getting into the kind of market where people are just saying there’s capitulation,” said David Ethridge, US IPO services leader at PricewaterhouseCoopers LLP. “It’s happening right now. They’re busy people and maybe they don’t want to fight at the board level about getting the process started when we’re not hearing anything good about IPOs.”
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As US IPO Market Languishes, Listings Head East to Booming China
Julia Fioretti, Filipe Pacheco, Pei Li
6-7 minutes
The epicenter of global initial public offering activity has shifted east to China as waves of volatility and slumping stock markets have sent virtually all sizable listings in the US into limbo.
Stock listings in Asia have raised $104 billion this year, accounting for a record 68% of global volume, data compiled by Bloomberg show. By contrast, US IPOs represent just 14% of the $153 billion fetched globally, the lowest ever for what has traditionally been the busiest listings market in the world.
IPOs Head East
IPOs in Asia account for highest percentage of global volumes on record
The strong Asian showing is mostly down to Chinese IPOs, which have continued to come thick and fast even as rising interest rates and the prospect of a recession put a lid on first-time share sales in most major markets. Of the 10 largest listings globally this year, six were from Chinese companies either on mainland exchanges -- the so-called A-share market -- or in Hong Kong, the data show.
“In 2022, as the world deals with inflation and global tensions, the IPO epicenter in terms of volume has shifted east,” said James Wang, co-head of ECM at Goldman Sachs Group Inc, in Asia ex-Japan. “The continuity of such appears sustainable for the time being given some sizable Hong Kong IPOs are lined up to potentially test markets before year end.”
In the US, which accounted for more than half of last year’s record $657 billion of IPO proceeds, the market has come to a sudden halt as inflation fears and heightened volatility keep valuations depressed and cause investors to steer clear of the high-growth companies that typically dominate IPO activity.
The unwelcoming market conditions have forced highly anticipated listings like Mobileye NV and Chobani Inc. to be pushed back or scrapped altogether. Until this week, there had been just one billion-dollar plus offering in New York this year, that of private equity firm TPG Inc. In Asia there have been 12, while the Middle East has had four.
“We’re getting into the kind of market where people are just saying there’s capitulation,” said David Ethridge, US IPO services leader at PricewaterhouseCoopers LLP. “It’s happening right now. They’re busy people and maybe they don’t want to fight at the board level about getting the process started when we’re not hearing anything good about IPOs.”
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fdi is up too
China's FDI inflow up 16.4 pct in first eight months
China's FDI inflow up 16.4 pct in first eight months-
english.news.cn
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