Galaxy Securities breaks Hong Kong’s IPO drought, more to come
After an IPO drought in Hong Kong lasting more than half a year, China Galaxy Securities Co Ltd raised $1.07bn in an initial public offering on Wednesday, the largest local deal so far this year and a cheer-up both for Hong Kong’s IPO market and for investment bankers.
Galaxy is China’s biggest brokerage in terms of clients base and its seventh largest in terms of revenue. It sold 1.57bn shares at HK$5.3 (68 US cents) a share, according to two bankers familiar with the deal. Continue reading »
Alibaba: master of the treasure cave
The media and netizens alike have been chatting up a storm about the upcoming Alibaba IPO. Even though the offer has not been officially announced, estimates of the company’s potential value once it is listed on the Hong Kong Stock Exchange have literally doubled in the past six months.
Is this a repeat of the frenzy that accompanied Facebook’s IPO, which ended in crashing disappointment when the stock plunged after the sale? Or can Alibaba Group make a better fist of handling the market? Continue reading »
Are IPOs such a problem for Shanghai?
China’s equity rally has clearly run into some trouble in recent weeks. The Shanghai index dropped a further 1 per cent on Wednesday, taking it into negative territory for 2013. Among the plethora of reasons offered for the stumbling run is the overhang of IPOs, and the potential that some of them might come to market soon.
But would a series of new issues really be so bad for the market? Continue reading »
China: shining a light at the machinery
January was a scary month for China’s machinery makers and their investors. First, Zoomlion was accused by a “concerned investor” of booking phantom sales, then Caterpillar accused its own recently-acquired Chinese subsidiary of accounting misconduct and took a $580m write down on the value of the deal.
Time for a ghostbusting analyst to bring some rational rigour to the sector. Continue reading »
Chinalco Mining IPO flops
Mining hasn’t been the flavour of the month for investors, with big writedowns from Rio Tinto and Anglo American. But it’s still a shock to witness the poor stock market debut of Chinalco Mining Corporation International, the copper company spun out of state-run Chinalco, China’s biggest aluminium group.
The shares slumped by up to 11 per cent in Hong Kong on Thursday, even though the IPO was priced in the middle of the indicative range and cornerstone investors bought nearly half the $400m offer. The stock later recovered but still closed 6.3 per cent down. Clearly the recent equities rally has not restored investors’ appetites for IPOs. Continue reading »
Alibaba: IPO question returns
You can almost hear the investment bankers salivating.
News on Tuesday that Jack Ma will step down as chief executive officer of Alibaba, the Chinese ecommerce giant that he founded, quickly had analysts and the tech industry buzzing with speculation that Ma is priming the company for an initial public offering.
If true, it would be, in the words of one analyst, “the mother of all IPOs”. Continue reading »
The start of a deluge? Sinopec unit files for $1.5bn HK IPO
Hong Kong, as we know, didn’t exactly have the best of year in 2012 when it came to initial public offerings. The city, which topped the global IPO charts from 2009 to 2011, suffered the ignominy of being relegated to fourth place last year, only narrowly beating Kuala Lumpur, the Malaysian capital.
But could change be afoot? Continue reading »
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Stefan Wagstyl
Rob Minto
Pan Kwan Yuk
Jonathan Wheatley
Heba Saleh