The retreat of IPOs The slowdown of the real economy in Asia – a physiological slowdown that avoids the dangers of inflation and bubbles – also has a financial aspect. M&A activity as well as IPO activity is undergoing downsizing. Yesterday's news that IPOs in the pipeline for a good 58 billion dollars have been withdrawn waiting for better times. And prudence also comes from cases such as those of Samsonite which saw its prices drop by 11% after its debut on the Hong Kong list on June 16th. And of 33 companies that entered the Hong Kong listing this year, 25 are trading below the IPO price. Although this morning, contrary to negative expectations, the debut of the Italian Prada saw a slight progress in the share price compared to the IPO level. However, even with the withdrawal of many offers, the volume of IPOs in Asia through May increased by 8% compared to last year and Hong Kong remains the preferred destination among Asian listings.
http://www.chinadaily.com.cn/bizchina/2011-06/24/content_12768613.htm
The winds of the IPO crisis are blowing again
Offerings worth $58 billion have been withdrawn pending better times, and 25 of the 33 companies that debuted in Hong Kong this year are trading below their offering price.
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