HONG KONG (Dow Jones Banking Intelligence) – China Nonferrous Metal Mining (Group) Co. Ltd. (CNMC) is braving the Hong Kong IPO market amid weakened investor sentiment. The offer, which has been reduced in size and boasts a reasonable valuation, could still struggle. read
China Everbright Bank, the country’s 13th largest bank as ranked by assets, is set to raise up to US$2.5 billion in what could be the largest initial public offering in Asia, so far in 2012. read
Bankers on May 7 started sounding fund managers on their interest for the long-awaited Graff Diamonds initial public offering. The process, known as pre-marketing or, more commonly these days, pre-deal investor education (PDIE), puts the highly anticipated US$1 billion (approximate) deal on track for a June 7 listing. read
There has been much talk of late about the decline of the Hong Kong market for initial public offerings. The volume of new listings is down. These days, deals that venture into marketing seem as likely to get pulled as to be priced. Most problematically, many IPOs that successfully close keep trading in the red. read
Shanghai Fosun Pharmaceutical has secured a green light from both the China Securities Regulatory Commission and the authorities in Hong Kong for its long-awaited initial public offering on HKEx, which means that launch could start soon. read
HONG KONG (Dow Jones Banking Intelligence) – Hong Kong’s securities watchdog, the Securities and Futures Commission (SFC), is understood to be about to issue a new consultation paper, in which it will propose tougher due diligence requirements – as well as harsher sanctions for IPO sponsors that fail to follow them. This is likely to face opposition on the part of the securities industry, although since banker-bashing remains in fashion, the new rules should ultimately see the light of day.
Bookbuilding closed late last week for the re-launched initial public offering of Haitong Securities, the mainland’s third-largest broker by revenue, bringing welcome activity to a lacklustre Hong Kong new issue market. read
I was quoted in an article in the Financial Times by Paul J. Davies, Robert Cookson and Sarah Mishkin entitled “Investors hang fire over Asia’s IPO pipeline”, on 2 April 2012. read
HONG KONG (Dow Jones Banking Intelligence) – Despite a significant pipeline of deals, at this stage in the year ECM transactions in Asia remain very much characterized by binary outcomes. Large, eye- catching offerings generate significant amounts of investor demand, while less obvious – and perhaps more challenging – transactions (when they close) have posted poor returns for investors. read
HONG KONG (Dow Jones Banking Intelligence) – Citigroup Inc.’s sale of its remaining stake in Housing Development Finance Corp (HDFC) comes as no surprise amid rising markets combined with a pressing need to find extra capital. Other Western firms have already been there in China over the last couple of years. Meanwhile Asian houses are seizing the opportunity to grow, on the back of their Western peers’ renewed asset dumps. read
