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Tag: Syndicate

The Juggernaut

Last week’s news was all about Goldman Sachs and Bank of America materially trimming their investment banking platforms in Asia, as margins for bulge bracket houses in the region have gradually eroded in the face of intense competition by Chinese brokers. read

, , China, Hong Kong, Syndicate

Game of thrones in the SAR

Hong Kong IPO issuance has seen healthy volumes so far this year. At US$68.3 billion, according to Dealogic, new listings on HKEx have already reached the level achieved for the entire year in 2014. The outcome of deals, however, remains heavily dependent on cornerstone investors, while oversized syndicates have sadly been back in full force since at least late spring. read

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Death of a salesman

HONG KONG (Dow Jones Investment Banker) – With market volatility comes caution, and IPO syndicates are no exception. Internationally and in Asia, these are increasingly becoming crowded at the senior end for sizeable transactions in particular. Junior underwriters, whose contribution remains marginal, are being squeezed out. read

, , , , China, Fees, Hong Kong... +2 more

The double edge of Glencore’s cornerstones

The total number of shares subscribed for by cornerstone investors in Glencore’s IPO, which is targeting proceeds of about US$10 billion (excluding a 10% over-allotment option), is expected to represent approximately 31% of the global offer, assuming the overallotment option is not exercised. The US$3.1 billion tranche therefore represents one of the largest cornerstone books by value ever achieved for an IPO. But there are consequences to the practice, which could come back and haunt the issuer as well as other investors in the company. read

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