APAC IPO value crashed 21% in the first half of 2018

Overall initial public offering (IPO) value in the Asia Pacific region fell 21% to US$31.9b in the first half of 2018.

Domestic value crashed 22% to US$26b and volume down at 360 whilst cross-border value dropped 12% to US$5.6b and its volume stable at 40, a Baker McKenzie report revealed.

The firm said that the crash was driven by geopolitical uncertainty and market volatility. Despite this, the region stayed as the most active in the world.

The leading sectors included financials with 4 IPOs, high technology with 5 IPOs, and real estate with 3 IPOs valued at US$1.45b, US$1.21b, and US$1.13b, respectively. The 40 cross-border IPOs raised US$5.58 in total, the report noted.

“In Asia-Pacific, deal flow could improve as market reforms may facilitate greater cross-border listings in Asia-Pacific,” Baker McKenzie Asia Pacific head of capital markets David Holland commented.

Holland said that the Hong Kong that the reform by Hong Kong Stock Exchange (HKSE) that allows dual share structures thereby making a company that would enlist in the US get attracted to the Asian market. He added that HKSE also launched depository receipts to allow Chinese citizens to invest in international companies.

Also read: Singapore IPOs lag Asian peers as homegrown companies rush to list abroad

Hongkong’s IPO that reached US$3.9b topped the cross-border IPO proceeds in the region has beaten the Singapore Exchange (US$1b). Bursa Malaysia (US$500,000), Korea Exchange (US$80,000), and the Australian Securities Exchange (US$50,000) also led the cross-border markets.