After the lift of a suspension in China’s IPO market, Chinese companies rushed to raise capital during the first quarter this year. China-domiciled companies raised US$7.2 billion through IPOs during the first three months this year, up 827.3% compared with the same period last year, according to preliminary results from Thomson Reuters.
The IPO deal value is the highest first quarter number since 2011, when US$16.0 billion was raised. But when compared with the fourth quarter of 2013, IPO deal value dropped 41.8%.
Chinese companies completed 49 IPOs in China’s A-share market, raising a total of US$5.6 billion. This compares with zero IPO deals in 2013, and around 48 A-share IPOs raising US$5.5 billion during the first quarter of 2012.
A total of 13 IPOs were completed by Chinese companies outside of mainland China, raising US$1.6 billion. The majority were listed in Hong Kong.
When including secondary offerings, Chinese companies raised a total of US$17.1 billion during the first quarter, a 28.5% decline compared to last year’s US$23.9 billion.
The number of IPOs and secondary offering deals increased 32.1% year-on-year during the first three months this year, suggesting that the average deal size has dropped significantly.
Convertible bonds issued by Chinese companies stood at US$2.6 billion so far this year, a 63.4% decrease year-on-year.