Year End Brings Problematic New IPO Wave 中国新一波IPO潮或无法达预期效果
China’s attempts in early fall to revive its struggling markets with a wave of IPOs for premier name companies had decidedly mixed results, but that hasn’t stopped a second group of major firms from announcing another wave of offerings set to raise more than $10 billion. (English article) Unlike the earlier wave of September and October offerings that saw a number of industry leaders make IPOs without much success, this new wave is composed mostly of names that are big but decidedly more middle-tier, leading me to suspect that many will be met with even less success. The latest wave of offerings has seen Sinochem announce plans to raise $5.5 billion in a Shanghai IPO (English article); New China Life seeking $2.5 billion in a dual Shanghai-Hong Kong IPO (English article); and China Railway Materials and Jiangsu Phoenix Media also seek to raise big amounts in Shanghai IPOs. Sinochem is a big name in its field, but all of the others are much less well-known. By comparison, the earlier wave of IPOs saw names like premier brokerage CITIC Securities (Shanghai: 600030; HKEx: 6030), industrial equipment giant Sany Heavy Industry (Shanghai: 600031) and Sinohydro Group (Shanghai: 601669), operator of the 3 Gorges Dam, all announce multibillion-dollar offerings in Hong Kong and Shanghai, in what looked like an orchestrated campaign by Beijing to try to add some excitement to its struggling stock markets. (previous post). CITIC Securities newly listed Hong Kong shares have done relatively well since their scaled-backed IPO in early October, but Sinohydro’s shares have slumped and Sany appears to have shelved its Hong Kong listing for now. Some are saying this latest round of IPO announcements is more a result of timing than any orchestrated effort by Beijing, as many of these companies have been waiting for a while now to list and may want to finally move ahead before the end of the year or risk having to wait until after Chinese New Year. Whatever the reason, these new IPOs are likely to fall flat if they move forward at all, and could even hurt the already-struggling broader markets by pulling investment dollars into their offerings.
Bottom line: A new wave of multibillion-dollar IPOs are likely to fall flat if they proceed, and could even hurt the broader slumping markets by drawing away investment dollars.
Related postings 相关文章:
◙ Beijing IPO Campaign to Boost Markets Falls Flat 大宗IPO提振中国股市或成泡影
◙ China Offers Up Premier IPOs to Revive Markets 大企业沪港上市 政府借机重燃沪港生机
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