Blue-chips ahoy!
What a disappointing vintage 2011 will have been for IPOs. The first half of the year started well enough, but it all came to a halt, with a succession of macro events messing up the markets. read
Year: 2011
HKEx conference on listing of European companies
On 3 November 2011, I gave a presentation at the Stock Exchange of Hong Kong (HKEx) on opportunities for listing European companies there. The presentation was organized at the initiative of the European Chamber of Commerce in Hong Kong and of the EU Business Information Programme (EUBIP). read
A Hong Kong fashion show for Zara?
HONG KONG (Dow Jones Investment Banker) – The Stock Exchange of Hong Kong (HKEx) is reportedly trying to woo Spain’s Inditex to list in Asia, as part of an international marketing roadshow in Europe in November. Such a move would make little sense if what is suggested is a secondary listing. But a spin-off in Hong Kong of the group’s fast-growing regional operations could be an attractive move. read
Planning for block trades in Sun Art Retail
HONG KONG (Dow Jones Investment Banker) – In sharp contrast to most other IPOs in Hong Kong this year, and as smaller competitor Beijing Jingkelong Co Ltd has just had its application for a listing in Shanghai rejected by China’s Securities Regulatory Commission (CSRC), mainland hypermarket operator Sun Art Retail Group Limited has posted a 26% gain since its US$1.1 billion IPO last July. Nine blue-chip cornerstone investors came in at the time of the offering for a combined US$420 million. Some of these may now perhaps consider exiting, and locking in capital gains after the expiry of their lock-ups early next year. We look at the stock’s valuation and liquidity, and at which firms might best be positioned to print a trade. read
How fat cats get the cream
With some US$35 billion worth of IPO already cancelled globally this year investment bankers need to replenish their deal pipelines. But how exactly do bankers convince issuers they should be entrusted with their stock market listing, or what will almost certainly be one of the most important market events for the company? read
Principals key to playing Hong Kong’s IPO game
HONG KONG (Dow Jones Investment Banker) – An analysis of the licenses awarded to investment banks in Hong Kong provides a good overview of the front-office resources available to each of these firms – with a few surprises. It also gives a clue as to how licensees are supervised by senior employees and shows how some firms effectively rely on scarce resources for IPO work as new issue sponsors. read
Pavilion REIT to add to M-REIT offering
HONG KONG (Dow Jones Investment Banker) – Pavilion REIT, a real estate investment trust which will invest in one of Kuala Lumpur’s major shopping malls, is reportedly about to launch an IPO and thus become the latest addition to Malaysia’s REIT (M-REIT) success story. read
Spirit of fee enterprise
Revenue generated by investment banks from underwriting Chinese IPOs globally was US$650 million in the first three months of this year, The Wall Street Journal reported. With all due respect to the Journal, that is probably a low-ball estimate, not counting all the ways banks profit from new listings. read
Noble Group to rock Singapore with ag float
HONG KONG (Dow Jones Investment Banker) – Singapore-listed Noble Group Ltd. likes to point out that its net book value has grown at a compound annual rate of 27% since its listing in 1997. However, it is currently trading on a price-to-book multiple of only 1.47x and a forward P/E below 10x, well below comparables. The proposed listing of its sizable and profitable agricultural business in Singapore, on which JPMorgan is advising, should be accretive for the group and result in a re-rating. read
Will Brunei’s DST answer the call to float?
HONG KONG (Dow Jones Investment Banker) – As one of Asia’s richest nations, the Sultanate of Brunei Darussalam relies on a significant expatriate population for the production of offshore oil. That, in turn, has fuelled the growth of its major mobile telecommunications provider, Data Stream Technologies Communications (DST). But with penetration rates near saturation, DST needs to re-invent itself and offer value-added products and services besides roaming. With equity markets in turmoil, it could consider issuing an Islamic going-public convertible bond prior to a listing in Kuala Lumpur – or in Singapore, perhaps through a business trust. read