|
 |
|
|
|
|
|
|
Tuesday March 23, 07:50
|
|
Investor enthusiasm for the Asian stocks remains undimmed
|
|
|
Companies in Asia, excluding Japan, have raised more than $17bn in initial public offerings and secondary share sales this year - the region's highest level of equity issuance in any first quarter. With a week left in March, the region is set to break the previous record of $13bn, set in the first quarter of 2000, according to figures compiled for the Financial Times by Dealogic, the research firm.
Asia's buoyant performance this year has been driven by Chinese companies, which have remained the region's favourite investment for overseas investors. IPOs such as Semi-conductor Manufacturing International Corporation's $1.8bn listing, and share offerings such as the $400m placement by aluminium group Chalco, totalled more than $6bn - the highest amount raised by Chinese companies in a quarter.
Analysts predict a record year for equity issuance in Asia with up to $57bn expected to be raised, well above the $40bn in the 2000 internet bubble.
Bankers are preparing a number of big IPOs, such as the $5bn-10bn offering by China Construction Bank, the country's first state-owned lender to list overseas. However, some observers are concerned that the unprecedented volume of equity issuance could depress stock markets and force some companies to cancel their IPO plans.
Last week, SMIC, China's biggest chip-maker, became the first large company to fall on its stock market debut since the start of this rally. "It all feels a bit frothy and bubbly," said a Hong Kong-based banker at a US investment firm. Other bankers believe investor interest will remain strong provided companies' valuations stay below the US and European levels.
|
|
All funds news
|
|
|
|
|
|
|
|
|
|
 KEYWORD SEARCH |
|
|
|
|
|
SUBSCRIPTION |
|
|
|
|
|