India, Korea and Japan to stay busy with IPOs while China stalls

Apr1,2024



After the worst quarter in five years for Asia Pacific initial public offerings, activity from South Korea, India and Japan is expected to pick up, while Chinese deals are likely to remain sparse.
New share sales across the sector fell to $11 billion between January and March, the lowest in any quarter since the beginning of 2019, data compiled by Bloomberg show. This amount represents a decline of 46% from the same period last year.
Whereas IPO Returning to the dominant positions in Europe and the US, the slowdown in Asia was mainly due to Beijing's decision to increase scrutiny of domestic new share sales as it tries to boost confidence in its equity market. Big deals also disappeared in Hong Kong amid concerns about China's economy. The city has not hosted an offering larger than $1 billion since October 2022.
Syngenta Group last week withdrew its long-delayed application for a $9 billion initial public offering in Shanghai, dealing another blow to China's equity markets. Alibaba Group Holding Limited Canceled the planned listing of its logistics arm.
Elsewhere in the region, new share sales are looming to raise several hundred million dollars. In South Korea, marine services company HD Hyundai Marine Solution Co. and a shareholder are seeking 742 billion won ($551 million) this month. Even at the lowest price, it would be the biggest IPO in Seoul since early 2022.
India has seen a flurry of small deals since the beginning of January come under scrutiny from regulators over the past month. Due to high demand for equity in the country, the market is expected to see offerings worth more than $100 million.
A shareholder of telecom services provider Bharti Hexacom Ltd is set to start selling shares in the company this week, raising up to 42.8 billion rupees ($513 million). The pipeline of mega deals expected in Mumbai also includes a potential $1 billion offering by Bajaj Housing Finance Ltd.
In Japan, a 70% surge in discount-store chain operator Trial Holdings Inc.'s shares since its March 21 listing could boost sentiment for other newcomers as improving shareholder returns and corporate profits fuel optimism in the local market. has been revived. The ¥38.85 billion ($257 million) IPO was the largest in Tokyo since October.
Meanwhile, in Hong Kong, traditionally one of the world's busiest listing venues, the drought will likely continue as Chinese companies remain on the sidelines after Syngenta and Alibaba's proposed deals fall through.



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