News that some international investment banks sometimes try to curry favor with China’s political elite by hiring their offspring should not surprise anyone. read
The IPO of one of the mainland’s largest property insurers, The People’s Insurance Company (Group) of China, which currently undergoing bookbuilding as it seeks to raise up to US$3.6 billion, is setting a bit of a record with no less than 17 bookrunners – or senior underwriters assigned to gather orders from institutional investors.
Milk maker Liaoning Huishan Holdings, also known as Huishan Dairy, has reportedly invited investment banks to submit proposals to lead a Hong Kong initial public offering projected at a size of up to US$1 billion. read
In this day and age, and amid continued volatile markets, for an IPO to succeed it’s pretty much a pre-requisite to secure cornerstone investors. Not only does their involvement considerably de-risks a transaction by parking away a big chunk of the shares on offer at an early stage; it also provides a high degree of confidence to other institutions – and to retail investors – to encourage them to subscribe to a deal that’s already been taken up by big, visible names. read
Banker bashing is in fashion. After all, the excesses and collapses of Bear Stearns, Lehman Brothers and RBS crystallised the sub-prime crisis in the United States and Britain. And blaming well-paid, banking executives for the woes of a long-suffering majority with “real jobs” is a message that resonates well with voters, especially in an election year. read
League tables feature prominently in presentations drafted by investment banks for their corporate clients, as well as in the financial press. They provide readers with an indication of their market shares and rankings relative to those of other houses, and for a given region, country, industry sector, product – or a combination of the above. read
With some US$35 billion worth of IPO already cancelled globally this year investment bankers need to replenish their deal pipelines. But how exactly do bankers convince issuers they should be entrusted with their stock market listing, or what will almost certainly be one of the most important market events for the company? read
HONG KONG (Dow Jones Investment Banker) – As one of Asia’s richest nations, the Sultanate of Brunei Darussalam relies on a significant expatriate population for the production of offshore oil. That, in turn, has fuelled the growth of its major mobile telecommunications provider, Data Stream Technologies Communications (DST). But with penetration rates near saturation, DST needs to re-invent itself and offer value-added products and services besides roaming. With equity markets in turmoil, it could consider issuing an Islamic going-public convertible bond prior to a listing in Kuala Lumpur – or in Singapore, perhaps through a business trust. read
HONG KONG (Dow Jones Investment Banker) – News that Manchester United plans to list 25% to 30% of its shares in a US$1 billion IPO on Singapore’s SGX came as a surprise – HKEx was very much expected to play host to the club, rather than Singapore’s smaller listing venue. A long-standing global focus at the exchange and clever marketing, as well as technical factors, may explain the decision. read
HONG KONG (Dow Jones Investment Banker) – Another week, another beauty pageant for a multi billion- dollar IPO in Hong Kong. In local fashion, Guangdong Development Bank (GDB) is said to be meeting brokers next Sunday and Monday to select bookrunners for a capital raising of up to US$4 billion, with a dual listing in Shanghai and Hong Kong.