The market for initial public offerings in China has been red hot.
The total money raised by IPOs worldwide increased in 2Q, but are still well below the level of the previous year. Newly public companies raised $US46.6 billion in the quarter said a report from IPO investment firm Renaissance Capital, up from $US36.1 billion in 1Q.
Chinese IPOs, however, are raking in most of the new cash. Half of the 10 largest cash gains were from Chinese listings. IPOs on the two largest Chinese stock exchanges, located in Shanghai and Hong Kong, raised $US18.4 billion, 39.6% of the world’s total. All
IPOs in the Asia-Pacific region, led by the Chinese offerings, made up 46.6% of the total market, up from 19.8% at the same point last year.
Global dollars raised decreased 24.4% year-over-year, down from $US61.6 in the same quarter last year. Non-Asian IPOs made $US24.9 billion in 2Q, falling from $US49.4 billion during the same quarter last year, a 49.4% drop.
Greece reared its head again in Renaissance’s explanations for the decreases. “Europe and North America struggled to reach even half of the IPO proceeds raised last year as Greek debt-related market volatility in the Eurozone and an absence of large Technology and Energy IPOs in the United States weighed on the regions’ totals,” said the report.
The financial sector led the way globally with 18 IPOs, raising $US15.6 billion, it was the only industry to raise more than $US4.5 billion this quarter.
Renaissance expects that more of the same is coming, with two Chinese companies set to have multibillion dollar IPOs in the second half of the year.
The top 10 largest IPOs from the quarter are below.