Chinese firms turning to Australia as IPO destination

Sydney

A FOOT massage franchise, a soccer boot-maker and a camellia tree grower all hope they can end the curse on Chinese firms pursuing initial public offerings in Australia as a lengthy wait and market volatility discourage them from listing at home.

As mainland-listed companies and investors reel from a US$4 trillion stock market slump since June, Australia is expected to attract bigger Chinese listings. About A$83 million (S$83 million) is expected to be raised in Australia by Chinese firms up to end-August compared to A$59 million raised in the first eight months of last year, according to Reuters. That puts them on course to top this year the record A$109 million they raised last year.