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More IPOs on Asia-Pacific exchanges so far this year than elsewhere: EY
THERE have been more initial public offers (IPOs) on Asia-Pacific exchanges so far this year than in any other region, with 339 new listings compared to 215 in the same period in 2013.
According to the quarterly EY Global IPO Trends: 2014 Q3, proceeds are also up, with US$47.4 billion in capital raised in 2014 - up 51 per cent from the previous year.
Hong Kong has been the busiest exchange in the region in 2014, with 64 IPOs raising US$16.7 billion.
"Positive investor sentiment is translating into an abundance of liquidity in the first three quarters. This, combined with a robust pipeline of IPO-ready businesses, points to a healthy level of new listings through the remainder of 2014," Max Loh, Asean and Singapore managing partner, said.
This quarter, the Singapore Exchange raised US$963 million in four deals while Singapore Catalist raised US$60 million in four deals. Mr Loh said real estate investment trusts and business trusts continue to be a focus area in Singapore as investors look for steady attractive yield.
"Looking ahead, IPO activity in Asean looks to be on an upward trajectory. More overseas companies are looking to list in Asean markets, particularly Singapore, as the region becomes increasingly important for their business. However, there is increasing interest among Asean's technology and e-commerce companies to list in the US and European exchanges given the potential for higher valuations."
Globally, IPO activity continued to climb with 851 IPOs raising US$186.6 billion in the first nine months of the year, a 49-per-cent increase in volume and a 94-per-cent increase in proceeds compared to the same period in 2013. Technology sector led by capital raised, with a total of US$42.9 billion via 107 IPOs, driven by Alibaba's record US$25 billion listing.
In the third quarter alone, there were 260 IPOs, raising US$67.1 billion, up 29 per cent in volume and 162 per cent in proceeds compared to Q3 2013.