Asia Pac cross border IPOs boom

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Cross border IPOs in the Asia Pacific region are increased by 75 per cent in the first half of this year, according to a report released by Baker & McKenzie.

Cross border fundraising grew to USD15.6bn, up from USD8.9bn in the same period last year, performing significantly better than the North American and Europe, Middle East and Africa regions.

As anticipated at the end of last year, we have seen initial successes from the opening of the Shanghai-Hong Kong Stock Connect, said Ashok Lalwani, chair of Baker & McKenzie’s Asia Pacific Capital Markets Practice Group.

While David Holland, head of Baker & McKenzie Corporate Practice in Australia, said that Australia didn’t see much activity and the regional boom is unlikely to have any significant effect on the Australian market specifically, it does indicate confidence in the region as a whole, adding that he expects the trend to continue.

“It’s generally a sign that the region continues to be buoyant and continues to be a region for economic and investment activity,” he said.
“Cross border IPOs are increasingly becoming a feature of the capital markets landscape and I think that’s a trend that we would expect to continue,” he added.

Lalwani said that in the region more broadly, companies should be feeling positive as the region strengthens as an investment hub.

“Looking ahead, we see some near-term volatility.  But we are optimistic for the long term, as exchanges in the region seek to promote stronger market environment,” he said.   

“This should create stronger hubs for investment, particularly for emerging Chinese, Southeast Asian and Indian companies.”