IPOs issued by China-domiciled companies raised a total of US$14.8 billion this year globally, down 43.6% from last year, the lowest since 2004 when proceeds fell to US$13 billion, according to the latest data released by Thomson Reuters.
But when including follow-on deals when companies raise capital by issuing additional stocks after its initial public offerings, Chinese companies raised US$70.0 billion in total, a 19.2% increase compared to last year’s US$58.7 billion.
The significant increase in follow-on deal volume is driven by China Merchant Bank’s US$5.5 billion A-share and H-share rights offerings.
The China A-share IPO market continues to remain quiet this year. In 2012, 147 IPOs raised US$15.6 billion in the A-share market.
The IPO suspension in China’s domestic exchanges pushed Chinese companies to tap other equity markets and listed 69 new issues outside China’s stock exchanges. Hong Kong Stock Exchange saw 45 Chinese company IPO raising US$13.7 billion, a 36.1% increase compared with last year.
There are at least 6 Chinese company IPOs in Hong Kong above US$1 billion in issuing size. China Everbright Bank raised US$3 billion.
Chinese companies also raised US$533.8 million in the New York Stock Exchange and US$350.1 million in NASDAQ.
Goldman Sachs took the top spot of the underwriters ranking for China equity issuance this year and captured 12.9% of the market share. UBS and CICC won the second and third place.