Citic Securities formally started book building for its US$2 billion Hong Kong float on Friday. This is a marquee deal likely to generate a lot of interest. Investors have made a pile of money participating in IPOs of mainland financial institutions, and there is hope Citic can repeat that magic despite the challenging market conditions.
HONG KONG (Dow Jones Investment Banker) – The long-awaited equity offering by China’s CITIC Securities Company Limited is finally under way. The brokerage is looking to raise up to US$2 billion from investors, and secure a secondary listing in Hong Kong. Bookbuilding is set to start on September 16, for an October 6 closing. Although CITIC Securities has been listed on the Mainland since 2003, its preliminary filing with HKEx provides a fascinating glimpse into China’s domestic investment banking industry and the activities of one of the leading houses there.
HONG KONG (Dow Jones Investment Banker) – China Shipping Nauticgreen Holdings Company Limited (CSN) has just started bookbuilding for a proposed IPO of up to US$192 million in Hong Kong, led by Deutsche Bank and China Merchants Securities. Pricing is set for August 10. Less volatile than that of shipping lines, the business is expected to grow, thanks in part to a substantial newbuild ship overcapacity over the next couple of years which should drive freight prices down. With a likely single digit P/E, valuation is reasonable too – a welcome change from some recent Hong Kong offerings.
Against the background of a morose Hong Kong IPO market, two large deals are entering marketing this week in the form of a US$5.4 billion (estimated) proposed listing of China Everbright Bank, and a mooted US$1 billion float of Chinese hypermarket operator Sun Art Retail. read
HONG KONG (Dow Jones Investment Banker) – The IPO of China Outfitters Holdings Ltd. that is currently in the market in Hong Kong is a welcome change from the over-priced, billion-dollar deals that have recently made headlines, and is exactly the sort of offering bankers and investors alike should be looking at.
I was interviewed by Deputy Editor Jasper Moiseiwitsch in the South China Morning Post‘s “Money Post” supplement on 13 June. The article was introduced as “Confessions of an IPO banker” on the cover of the supplement, and the title was “In deal search, simplicity counts”.
Click below to see the interview, which is reproduced with permission.
The Prada growth story is intuitively understood by Hong Kong shoppers. Anyone who has seen the queues at their stylish boutiques has a sense of the profitability and potential of this fashion and luxury goods vendor. read
