China's exchanges top for IPO listings
HIGH-PROFILE listings such as Italian luxury fashion house Prada and commodities trader Glencore International helped China’s exchanges retain top spot for initial public offerings (IPOs) this year as the shift in financial activity from the West to the East continued.
Despite sharp falls in Chinese stock markets, companies raised nearly $73billion (£47billion) from IPOs in Hong Kong, Shanghai and Shenzhen, according to data provider Dealogic, compared with £26.6billion raised on America’s Nasdaq and New York Stock Exchange combined.
Hong Kong, where Prada raised £1.39billion from its June flotation after its shares were priced at a much lower level than initially hoped for, was the leading bourse with £20.3billion raised, edging out New York with £19.96billion.
London, whose share of global funds raised increased from 3.9 per cent in 2010 to 10 per cent, was
third with £11.63billion.
But the amount raised in global IPOs fell sharply from the previous year – down 40 per cent to £109billion – as turmoil
in financial markets due to economic growth concerns and the eurozone debt crisis led to companies delaying or calling off share offerings.
The number of deals shrank by 14 per cent to 1,283, although this was still well ahead of 2009 when the 597 IPOs globally raised £74.6billion.