The centre of global initial public offering (IPO) activity has shifted east to China as waves of volatility and slumping stock markets sends many sizeable listings in the US into limbo.
Stock listings in Asia have raised $104 billion this year, accounting for a record 68 per cent of global volume, data compiled by Bloomberg shows.
By contrast, US IPOs represent 14 per cent of the $153bn fetched globally, the lowest level for what has traditionally been the busiest listings market in the world.
The strong Asian showing is mostly down to Chinese IPOs, which have come thick and fast even as rising interest rates and the prospect of a recession put a lid on first-time share sales in most major markets.
Of the 10 largest listings globally this year, six were from Chinese companies either on mainland exchanges — the so-called A-share market — or in Hong Kong, the data shows.
“In 2022, as the world deals with inflation and global tensions, the IPO epicentre in terms of volume has shifted east,” said James Wang, co-head of ECM at Goldman Sachs Group, in Asia ex-Japan.
“The continuity of such appears sustainable for the time being given some sizeable Hong Kong IPOs are lined up to potentially test markets before year end.”
In the US, which accounted for more than half of last year’s record $657bn of IPO proceeds, the market has come to a sudden halt as inflation fears and heightened volatility keep valuations depressed and cause investors to steer clear of the high-growth companies that typically dominate IPO activity.
The unwelcoming market conditions have forced highly anticipated listings such as Mobileye and Chobani to be pushed back or scrapped altogether.
Until last week, there had been only one $1bn-plus offering in New York this year, that of private equity firm TPG. In Asia, there have been 12, while the Middle East has had four.
In 2022, as the world deals with inflation and global tensions, the IPO epicentre in terms of volume has shifted east
James Wang,
co-head of ECM at Goldman Sachs Group in Asia
“We’re getting into the kind of market where people are just saying there’s capitulation,” said David Ethridge, US IPO services leader at PricewaterhouseCoopers.
“It’s happening right now. They’re busy people and maybe they don’t want to fight at the board level about getting the process started when we’re not hearing anything good about IPOs.”
The delayed US deals are compounding a void that was already being created by an exodus of IPO candidates based in China.
Only $636 million has been raised in New York by companies from China or Hong Kong, compared with almost $16bn a year ago.
The slowdown in US IPOs by Chinese companies follows a run of delistings as Beijing and Washington worked to hash out an agreement on letting US regulators inspect Chinese companies’ audits. If they failed they risked being kicked off American exchanges.
That prospect of forced delisting prompted US-traded Chinese companies to raise tens of billions of dollars through so-called homecoming share sales in either Hong Kong or mainland exchanges in recent years. Higher valuations back home were another draw for them.
“The A-share market is somehow immune to the global volatility,” said Zili Guo, co-head of Asia equity capital markets at UBS Group.
“It’s largely a domestic market and mostly driven by domestic money. The market condition in the A-share market is relatively stable and, compared to the volatility we have seen in global markets, it can still print deals consistently.”
This year, some of Asia’s biggest listings were by companies that have been booted out of New York. China Mobile and CNOOC fetched a combined $14bn between them through their Shanghai share sales.
There are signs of activity in Hong Kong, which had a slow first half. Chinese battery maker CALB is gauging demand for a potential $2bn IPO, while electric-vehicle maker Zhejiang Leapmotor Technologies is looking to start taking investor orders for a $1bn offering next week, Bloomberg News reported.
Even with a preliminary agreement on the auditing issue in the US, there are doubts that the flow of Chinese companies to New York — they have raised $122bn since the start of the century — will return to previous levels given increasing alternatives.
“Chinese issuers now have more options when they want offshore funding,” said Mandy Zhu, head of China, global banking at UBS. “Apart from the traditional HK and US listings, they can do an A-share IPO first.”
Following that, the companies could tap European exchanges through a stock link between China and Europe, she said.
Europe is becoming a more appealing listing venue for Chinese companies than the US.
About $2.3bn has been raised by mainland companies in Europe this year through the newly expanded stock link between China and exchanges in Germany, Switzerland and the UK, helping prop up dire listing volumes on the continent.
There is a mammoth deal around the corner in Europe, which could double the region’s current IPO proceeds of $9.8bn in one fell swoop.
Porsche could kick off an offering as soon as next week that values the sports car maker at as much as €85bn ($85bn), Bloomberg News reported.
The schedule
December 5 - 23: Shooting competition, Al Dhafra Shooting Club
December 9 - 24: Handicrafts competition, from 4pm until 10pm, Heritage Souq
December 11 - 20: Dates competition, from 4pm
December 12 - 20: Sour milk competition
December 13: Falcon beauty competition
December 14 and 20: Saluki races
December 15: Arabian horse races, from 4pm
December 16 - 19: Falconry competition
December 18: Camel milk competition, from 7.30 - 9.30 am
December 20 and 21: Sheep beauty competition, from 10am
December 22: The best herd of 30 camels
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
The Travel Diaries of Albert Einstein The Far East, Palestine, and Spain, 1922 – 1923
Editor Ze’ev Rosenkranz
Princeton
UAE currency: the story behind the money in your pockets
Cinco in numbers
Dh3.7 million
The estimated cost of Victoria Swarovski’s gem-encrusted Michael Cinco wedding gown
46
The number, in kilograms, that Swarovski’s wedding gown weighed.
1,000
The hours it took to create Cinco’s vermillion petal gown, as seen in his atelier [note, is the one he’s playing with in the corner of a room]
50
How many looks Cinco has created in a new collection to celebrate Ballet Philippines’ 50th birthday
3,000
The hours needed to create the butterfly gown worn by Aishwarya Rai to the 2018 Cannes Film Festival.
1.1 million
The number of followers that Michael Cinco’s Instagram account has garnered.
COMPANY%20PROFILE
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The line up
Friday: Giggs, Sho Madjozi and Masego
Saturday: Nas, Lion Bbae, Roxanne Shante and DaniLeigh
Sole DXB runs from December 6 to 8 at Dubai Design District. Weekend pass is Dh295 while a one day pass is Dh195. Tickets are available from www.soledxb.com
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
Could%20We%20Be%20More
%3Cp%3EArtist%3A%20Kokoroko%3Cbr%3ELabel%3A%20Brownswood%20Recordings%3Cbr%3ERating%3A%203.5%2F5%3C%2Fp%3E%0A
HAJJAN
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heading
Iran has sent five planeloads of food to Qatar, which is suffering shortages amid a regional blockade.
A number of nations, including Iran's major rival Saudi Arabia, last week cut ties with Qatar, accusing it of funding terrorism, charges it denies.
The land border with Saudi Arabia, through which 40% of Qatar's food comes, has been closed.
Meanwhile, mediators Kuwait said that Qatar was ready to listen to the "qualms" of its neighbours.
Profile
Name: Carzaty
Founders: Marwan Chaar and Hassan Jaffar
Launched: 2017
Employees: 22
Based: Dubai and Muscat
Sector: Automobile retail
Funding to date: $5.5 million
UAE currency: the story behind the money in your pockets
From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
What is Bitcoin?
Bitcoin is the most popular virtual currency in the world. It was created in 2009 as a new way of paying for things that would not be subject to central banks that are capable of devaluing currency. A Bitcoin itself is essentially a line of computer code. It's signed digitally when it goes from one owner to another. There are sustainability concerns around the cryptocurrency, which stem from the process of "mining" that is central to its existence.
The "miners" use computers to make complex calculations that verify transactions in Bitcoin. This uses a tremendous amount of energy via computers and server farms all over the world, which has given rise to concerns about the amount of fossil fuel-dependent electricity used to power the computers.
WHY%20AAYAN%20IS%20'PERFECT%20EXAMPLE'
%3Cp%3EDavid%20White%20might%20be%20new%20to%20the%20country%2C%20but%20he%20has%20clearly%20already%20built%20up%20an%20affinity%20with%20the%20place.%3Cbr%3E%3Cbr%3EAfter%20the%20UAE%20shocked%20Pakistan%20in%20the%20semi-final%20of%20the%20Under%2019%20Asia%20Cup%20last%20month%2C%20White%20was%20hugged%20on%20the%20field%20by%20Aayan%20Khan%2C%20the%20team%E2%80%99s%20captain.%3Cbr%3E%3Cbr%3EWhite%20suggests%20that%20was%20more%20a%20sign%20of%20Aayan%E2%80%99s%20amiability%20than%20anything%20else.%20But%20he%20believes%20the%20young%20all-rounder%2C%20who%20was%20part%20of%20the%20winning%20Gulf%20Giants%20team%20last%20year%2C%20is%20just%20the%20sort%20of%20player%20the%20country%20should%20be%20seeking%20to%20produce%20via%20the%20ILT20.%3Cbr%3E%3Cbr%3E%E2%80%9CHe%20is%20a%20delightful%20young%20man%2C%E2%80%9D%20White%20said.%20%E2%80%9CHe%20played%20in%20the%20competition%20last%20year%20at%2017%2C%20and%20look%20at%20his%20development%20from%20there%20till%20now%2C%20and%20where%20he%20is%20representing%20the%20UAE.%3Cbr%3E%3Cbr%3E%E2%80%9CHe%20was%20influential%20in%20the%20U19%20team%20which%20beat%20Pakistan.%20He%20is%20the%20perfect%20example%20of%20what%20we%20are%20all%20trying%20to%20achieve%20here.%3Cbr%3E%3Cbr%3E%E2%80%9CIt%20is%20about%20the%20development%20of%20players%20who%20are%20going%20to%20represent%20the%20UAE%20and%20go%20on%20to%20help%20make%20UAE%20a%20force%20in%20world%20cricket.%E2%80%9D%C2%A0%3C%2Fp%3E%0A
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Brief scores:
Day 1
Toss: South Africa, field first
Pakistan (1st innings) 177: Sarfraz 56, Masood 44; Olivier 4-48
South Africa (1st innings) 123-2: Markram 78; Masood 1-4
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UAE currency: the story behind the money in your pockets
Shubh Mangal Saavdhan
Directed by: RS Prasanna
Starring: Ayushmann Khurrana, Bhumi Pednekar
T20 World Cup Qualifier
October 18 – November 2
Opening fixtures
Friday, October 18
ICC Academy: 10am, Scotland v Singapore, 2.10pm, Netherlands v Kenya
Zayed Cricket Stadium: 2.10pm, Hong Kong v Ireland, 7.30pm, Oman v UAE
UAE squad
Ahmed Raza (captain), Rohan Mustafa, Ashfaq Ahmed, Rameez Shahzad, Darius D’Silva, Mohammed Usman, Mohammed Boota, Zawar Farid, Ghulam Shabber, Junaid Siddique, Sultan Ahmed, Imran Haider, Waheed Ahmed, Chirag Suri, Zahoor Khan
Players out: Mohammed Naveed, Shaiman Anwar, Qadeer Ahmed
Players in: Junaid Siddique, Darius D’Silva, Waheed Ahmed
MATCH INFO
Qalandars 109-3 (10ovs)
Salt 30, Malan 24, Trego 23, Jayasuriya 2-14
Bangla Tigers (9.4ovs)
Fletcher 52, Rossouw 31
Bangla Tigers win by six wickets
Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
Frida%20
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Read more about the coronavirus
More from Rashmee Roshan Lall
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
MATCH INFO
Real Madrid 2
Vinicius Junior (71') Mariano (90 2')
Barcelona 0
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
Mercedes-AMG GT 63 S E Performance: the specs
Engine: 4.0-litre twin-turbo V8 plus rear-mounted electric motor
Power: 843hp at N/A rpm
Torque: 1470Nm N/A rpm
Transmission: 9-speed auto
Fuel consumption: 8.6L/100km
On sale: October to December
Price: From Dh875,000 (estimate)
