Slumping Stock Markets Threatens $10 Billion Asia IPOs
The decreasing stock markets are threatening to disrupt as much as US$10 billion IPOs across the Asian region.
According to the data compiled by Bloomberg, companies are gauging demand or taking orders for a much as US$2.5 billion initial public offering in Southeast Asia. In Hong Kong, US$2.3 billion initial public offering deals are taken. This month, Suntory is seeking to raise a hefty US$4.7 billion in Japan's biggest first time share sale since September.
With the benchmark stock index of Asia wiping out the year's gains, some companies that market IPOs may be forced to delay listings or accept lower valuations. Yesterday, Hopewell Hong Kong Properties Ltd. has scrapped US$780 million offering in the city. On the other hand, China Harmony Auto Holding Ltd. fell by 16% in the worst Hong Kong debut since February of last year.
Rotating markets are putting IPO recovery at risk according to Bloomberg data.
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